Cullumber Inc. $(CI$ is a backyard pond design and installation company. $Cl$ was incorporated during $2023,$ with an unlimited number of

common shares, and $52,000$ preferred shares with a $$3$ dividend rate authorized. $CI$ follows ASPE. The following transactions took

place during the first year of operations with respect to these shares:

Jan. $1$ The articles of incorporation were filed and state that an unlimited number of common shares and $52,000$ preferred

shares are authorized.

Jan. $15,31,200$ common shares were sold by subscription to $3$ individuals, who each purchased $10,400$ shares for $$52$ per

share. The terms require $10\%$ of the balance to be paid in cash immediately. The balance was to be paid by December

$31,2024,$ at which time the shares will be issued.

Feb. $20,72,800$ common shares were sold by subscription to $7$ individuals, who each purchased $10,400$ shares for $$52$ per

share. The terms require that $10\%$ of the balance be paid in cash immediately, with the balance to be paid by

December $31,2023.$ Shares are to be issued once the full payment is received.

Mar. $352,000$ common shares were sold by an underwriter for $$54$ per share. The underwriter charged $Cl$ a $5\%$ commission

on the sale.

May $10,Cl$ paid $$2,080$ to a printing company for costs involved in printing common share certificates. As well, an invoice for

legal fees related to the issue of common shares was received for $$15,600.$

Sept. $23Cl$ issued a combination of $2,080$ common and $1,040$ preferred shares to a new shareholder for a total price of

$$208,000.$ CI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shares

was used to estimate the value of the common share portion of the transaction.

Nov. $28$ Cl wanted to recognize the efforts of a key employee and offered him the opportunity to purchase $520$ common

shares for $$54,$ to be paid by December $31,2024.$ The employee accepted the offer and signed a note payable to $Cl$ in

the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued

immediately.

Dec. $31$ Of the $7$ subscriptions issued on February $20,$ five subscriptions were paid in full and two subscribers defaulted.

According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that

had been paid and no cash would be refunded.

Dec. $31$ Cl declared a dividend of $$208,000$ for $2023.$ Net income for the year was $$832,000.$ Common Shares Subscribed

Share Subscrlptlons Recelvable

Mar. $3$

May $10$

Sept. $23$

Sept $23$

Cash

Cash

Cash

Notes Recelvable

Common Shares

$($To record collection of subscriptions receivable$)$

$($To record issuance of shares for fully paid subscriptions$)$ Common Shares Subscrlbed

Share Subscrlptlons Recelvable

PREAPRE THE SHAREHOLDER'S EQUITY SECTION OF THE SFP