Email from CFO to CPA From: Tom Pearson (tompearson.cfo@mail.com) To: Hannah Goodwin (hannahgoodwin.cpa@mail.com) Date: January 5, Year 3 Subject: Year 2 Securities Transactions Hi Hannah I recorded the following securities transactions in Year 2: 1) Sold trading securities for $139,000 2) Purchased available-for-sale securities for $75,000 Additionally, there was a $22,000 cash purchase of inventory in November, Year 2. Please let me know if you need any additional information Sincerely, Press Release Press Release Alaskan Travels, Inc., Declares Dividend Seattle, WA, December 1, Year 2 - Alaskan Travels, Inc., a charter travel company, today announced that its Board of Directors declared a cash dividend of $1.25 per share of the company's common stock. Alaskan Travels, Inc., currently has 64,000 shares outstanding. The dividend will be paid on December 27, Year 2 to all common shareholders of record as of the close of business on December 15, Year 2 About Alaskan Travels, Inc. Founded in Year 1, Alaskan Travels, Inc, is a charter travel company located in Seattle, WA. The company provides chartered air and ground tours throughout Alaska. Declaration of Preferred Stock Dividends Resolution of the Board of Directors of Alaskan Travels, Inc. Seattle, WA Declaration of Preferred Stock Dividends BE IT RESOLVED THAT: 1. The company declares, on this day, November 20, Year 2 the required annual cash dividend for preferred stock 2. The dividend of $550,000 is to be set aside and distributed on December 15, Year 2 3. The directors of Alaskan Travels, Inc, hereby certify that the preferred shareholders of record with the company will be provided with a copy of this notice The undersigned, being The Chairman of the Board for Alaskan Travels, Inc., hereby approves the foregoing resolution in accordance with the provisions of the company's bylaws. DATED the 20th day of November, Year 2 Carson Mitchel, Chairman of the Board X Finance Agreement Palmer Aircraft Finance Used Aircraft Purchase and Finance Agreement December 31, Year 2 Borrower/Buyer. Alaskan Travels, Inc. Principal Amount: $247,500 Seller: Queen Airway Date: December 31, Year 2 Executed, this day of December 31, Year 2, this Used Aircraft Purchase and Finance Agreement is made between Alaskan Travels, Inc., of Seattle, Washington, and Palmer Aircraft Finance Company of Dallas, Texas. Alaskan Travels, Inc., agrees to purchase from Queen Airway, one used multi-engine prop aircraft, VIN 74-811, for the sum of U.S. $275,000 The lender, Palmer Aircraft Finance Company, agrees to finance 90%, or U.S. $247,500, of the purchase price of this aircraft. The seller, Queen Airway, agrees to deliver aircraft upon (1) receipt of a cashier's check from the buyer for 10% of the purchase price, or U.S. $27,500, and (2) execution of this finance agreement. The borrower, Alaskan Travels, Inc., for value received and prior to the delivery of said aircraft, promises to pay (1) to the seller, U.S. $27,500, in the form of a cashier's check, and (2) to the lender, the principal sum of U.S. $247,500, with interest, at the annual rate of 12%. Payment of principal and interest will be made in 10 equal annual installments beginning December 31. Year 3. At any time while not in default under this Note, the borrower may pay the outstanding balance then owing under this Note to the lender without further bonus or penalty. Notwithstanding anything to the contrary in this Note, if the borrower defaults in the performance of any obligation under this Note, then the lender may declare the principal amount owing and interest due under this Note at that time to be immediately due and payable This note will be construed in accordance with and governed by the laws of the State Tom Pearson Jenny Botten (signature of borrower) (Gignature of seller) (signature oflender) Tom Pearson, CFO Jenny Bolten, CEO Graham Hollister, VP of Finance Alaskan Travels, Inc Queen Airway Graham Hollister Palmer Aircraft Finance Canceled Check (Read Only) Alaskan Travels, Inc. First Arctic Bank 1487 Seattle, Washington Greeneville, IL 61820 57-6892-000 Date 08/2/Year 2 PAY TO THE Hidden City Bank $ ORDER OF 123 S Main Street 325,000.00 Seattle Washington Three hundred twenty five thousand and 00/100 DOLLARS MEMO Tom Pearson settlement of note payable 130000055555000:1 M0012345678" "'1487" wy CANCELED Using the direct method, and the information in the exhibits, prepare the investing section of the statement of cash flows for Alaskan Travels, Inc., as of December 31, Year 2. In the first column, select from the option list provided the description for cash flows that are clearly from investing activities. In the second column, enter the amounts that will be reported in the investing activities section of the statement of cash flows. Indicate negative numbers by using a leading minus (-) sign. Cash flows from investing activities: Net cash provided by (used in) investing activities: 1. 123 Proceeds from sale of trading securities Purchase of available-for-sale securities 2. 123 3. Payment for purchase of airplane 123 4. Total: 123 x Meeting - Board of Directors Seattle, WA A meeting of the Board of Directors of Alaskan Travels, Inc., was held on May 11, Year 2, at 2:00p.m. at the company offices in Seattle, Washington. Those present were: Carson Mitchel, Chairman of the Board, Wallace Shepard, President and CEO, Jeremy Cox, Suzanne Richardson, Tabitha Gillespie, and John Dillon (secretary) Proceedings: Mr. Carson Mitchel, Chairman of the Board, presided. On motion and unanimously approved, the following resolutions were adopted: BE IT RESOLVED, Alaskan Travels, Inc., will proceed with the purchase of the 20-acre parcel of land located at Jones Field for $150,000 BE IT RESOLVED, Alaskan Travels, Inc., will reacquire common stock from Walter Morrison, to be held as treasury stock, for $100,000 cash BE IT RESOLVED, Conroy Aviation has agreed to accept common stock for settlement of our $1,000,000 bond payable Adjournment There being no further business to come before the meeting, it was on motion adjourned at 3:30 pm Respectfully submitted: John Dillon, Secretary Email from CFO to CPA From: Tom Pearson (tompearson.cfo@mail.com) To: Hannah Goodwin (hannahgoodwin.cpa@mail.com) Date: January 5, Year 3 Subject: Year 2 Securities Transactions Hi Hannah I recorded the following securities transactions in Year 2: 1) Sold trading securities for $139,000 2) Purchased available-for-sale securities for $75,000 Additionally, there was a $22,000 cash purchase of inventory in November, Year 2. Please let me know if you need any additional information Sincerely, Press Release Press Release Alaskan Travels, Inc., Declares Dividend Seattle, WA, December 1, Year 2 - Alaskan Travels, Inc., a charter travel company, today announced that its Board of Directors declared a cash dividend of $1.25 per share of the company's common stock. Alaskan Travels, Inc., currently has 64,000 shares outstanding. The dividend will be paid on December 27, Year 2 to all common shareholders of record as of the close of business on December 15, Year 2 About Alaskan Travels, Inc. Founded in Year 1, Alaskan Travels, Inc, is a charter travel company located in Seattle, WA. The company provides chartered air and ground tours throughout Alaska. Declaration of Preferred Stock Dividends Resolution of the Board of Directors of Alaskan Travels, Inc. Seattle, WA Declaration of Preferred Stock Dividends BE IT RESOLVED THAT: 1. The company declares, on this day, November 20, Year 2 the required annual cash dividend for preferred stock 2. The dividend of $550,000 is to be set aside and distributed on December 15, Year 2 3. The directors of Alaskan Travels, Inc, hereby certify that the preferred shareholders of record with the company will be provided with a copy of this notice The undersigned, being The Chairman of the Board for Alaskan Travels, Inc., hereby approves the foregoing resolution in accordance with the provisions of the company's bylaws. DATED the 20th day of November, Year 2 Carson Mitchel, Chairman of the Board X Finance Agreement Palmer Aircraft Finance Used Aircraft Purchase and Finance Agreement December 31, Year 2 Borrower/Buyer. Alaskan Travels, Inc. Principal Amount: $247,500 Seller: Queen Airway Date: December 31, Year 2 Executed, this day of December 31, Year 2, this Used Aircraft Purchase and Finance Agreement is made between Alaskan Travels, Inc., of Seattle, Washington, and Palmer Aircraft Finance Company of Dallas, Texas. Alaskan Travels, Inc., agrees to purchase from Queen Airway, one used multi-engine prop aircraft, VIN 74-811, for the sum of U.S. $275,000 The lender, Palmer Aircraft Finance Company, agrees to finance 90%, or U.S. $247,500, of the purchase price of this aircraft. The seller, Queen Airway, agrees to deliver aircraft upon (1) receipt of a cashier's check from the buyer for 10% of the purchase price, or U.S. $27,500, and (2) execution of this finance agreement. The borrower, Alaskan Travels, Inc., for value received and prior to the delivery of said aircraft, promises to pay (1) to the seller, U.S. $27,500, in the form of a cashier's check, and (2) to the lender, the principal sum of U.S. $247,500, with interest, at the annual rate of 12%. Payment of principal and interest will be made in 10 equal annual installments beginning December 31. Year 3. At any time while not in default under this Note, the borrower may pay the outstanding balance then owing under this Note to the lender without further bonus or penalty. Notwithstanding anything to the contrary in this Note, if the borrower defaults in the performance of any obligation under this Note, then the lender may declare the principal amount owing and interest due under this Note at that time to be immediately due and payable This note will be construed in accordance with and governed by the laws of the State Tom Pearson Jenny Botten (signature of borrower) (Gignature of seller) (signature oflender) Tom Pearson, CFO Jenny Bolten, CEO Graham Hollister, VP of Finance Alaskan Travels, Inc Queen Airway Graham Hollister Palmer Aircraft Finance Canceled Check (Read Only) Alaskan Travels, Inc. First Arctic Bank 1487 Seattle, Washington Greeneville, IL 61820 57-6892-000 Date 08/2/Year 2 PAY TO THE Hidden City Bank $ ORDER OF 123 S Main Street 325,000.00 Seattle Washington Three hundred twenty five thousand and 00/100 DOLLARS MEMO Tom Pearson settlement of note payable 130000055555000:1 M0012345678" "'1487" wy CANCELED Using the direct method, and the information in the exhibits, prepare the investing section of the statement of cash flows for Alaskan Travels, Inc., as of December 31, Year 2. In the first column, select from the option list provided the description for cash flows that are clearly from investing activities. In the second column, enter the amounts that will be reported in the investing activities section of the statement of cash flows. Indicate negative numbers by using a leading minus (-) sign. Cash flows from investing activities: Net cash provided by (used in) investing activities: 1. 123 Proceeds from sale of trading securities Purchase of available-for-sale securities 2. 123 3. Payment for purchase of airplane 123 4. Total: 123 x Meeting - Board of Directors Seattle, WA A meeting of the Board of Directors of Alaskan Travels, Inc., was held on May 11, Year 2, at 2:00p.m. at the company offices in Seattle, Washington. Those present were: Carson Mitchel, Chairman of the Board, Wallace Shepard, President and CEO, Jeremy Cox, Suzanne Richardson, Tabitha Gillespie, and John Dillon (secretary) Proceedings: Mr. Carson Mitchel, Chairman of the Board, presided. On motion and unanimously approved, the following resolutions were adopted: BE IT RESOLVED, Alaskan Travels, Inc., will proceed with the purchase of the 20-acre parcel of land located at Jones Field for $150,000 BE IT RESOLVED, Alaskan Travels, Inc., will reacquire common stock from Walter Morrison, to be held as treasury stock, for $100,000 cash BE IT RESOLVED, Conroy Aviation has agreed to accept common stock for settlement of our $1,000,000 bond payable Adjournment There being no further business to come before the meeting, it was on motion adjourned at 3:30 pm Respectfully submitted: John Dillon, Secretary