1.What is the purpose of a statement of cash flows?3 marks

2.What is the difference between-4 marks

a.Notes payable and bonds payable

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b.Share and a bond

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3.What are organization costs?2 marks

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4.A $15,000 bond with a contract interest rate of 10% was issued on March 1,2017. Calculate the cash paid onthe first interest payment date if interest is paid :2 marks

a.Annually

b.Semi annually

c.Quarterly

d.Monthly

5.On December 31,2017, Sack Port Ventures Inc. borrowed $80,000 by signing a four-year,5% instalment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2018 through 2021.

a.How much principal will be included in each of the four payments?

b.Prepare amortization table for this instalment note .5marks

6.Prepare journal entries for each of the following selected transactions that occurred during Tio Network Corporation's first year of operations:4 marks

2017

Jan 15

Feb 21

Mar.9

Aug.15

Issued 2,000 common shares to the corporation's promoters in exchange for their efforts in creating it, Their efforts are estimated to be worth $31,500

15,000 common shares were issued for cash of $14 per share

6,000 preferred shares were issued for cash totalling $110,600

55,000 common shares were issued in exchange for land, building and equipment with appraised values of $315,000, $ 420,000 and $112,000 respectively