FINANCING & INVESTING CASE It was February 28th, 2021 and Agnes Kahkeetoomayou was looking to finalize the accounting activities for her finance and investing for the year. She had gathered select account balances (exhibit 1) and wanted to complete the appropriate transactions for the following events: TRADING INVESTMENTS On April 30th, 2020 Agnes purchased 200 (five year bonds) with a coupon of 10% interest for the prevailing market rate of 14% the bonds were set to mature on March 31st, 2024. At fiscal year end the current market rate was 8% and they decided to sell 25% of T/I bonds at market rate plus accrued interest. On June 15th, Agnes purchased 3500 shares of Surge Copper Corp. for $0.40 per share plus a flat $77 transaction fee. On July 17th Agnes traded 500 shares for a new tablet with a retail value of $300, the shares were trading for $0.45 that day. On July 25th Surge Copper had declared a 10% stock dividend per share with a date of record of August 21st and a date of distribution of August 27th. On February 20th, 2021 Surge declared a dividend of $2 per share to be paid in March. The shares were trading for $0.70 per share on February 25th so they decided to sell 1/3 of their shares that day. At fiscal year end the shares were trading for $0.90 per share. DEBT FINANCING The business had bank loan from back in 2008 with a 20-year variable rate and was to be repaid in equal installments over the life of the loan. Payments were automatically withdrawn from the company's account at the end of each month for the principal plus interest. Withdrawals for the year related to this total $2500. The business had 700 bonds they had issued long ago when the prevailing market rate for new ventures like theirs was 18%. The bond paid interest every June 30th and December 31st. They desired to buyout the debt early, so they did so on October 31st using a repurchase option at 85. EQUITY FINANCING No dividends were paid the previous year. On May 3rd, Agnes repurchased 800 common shares for $13 per share. On August 15th they declared a 10% stock dividend with a date of record of August 18th and distribution on the 28th of August. Shares of common stock traded for $7 on the date of declaration and $9 on the date of distribution. Agnes split the common stocks 2:1 on Nov 17th On Feb 25th a $0.10 dividend was declared to be paid in the next fiscal year. REQUIRED As Agnes complete the financial transactions using a Super T. Only Microsoft Word or Excel a will be accepted. Exhibit 1 Select account balances As at February 28th, 2020 Liabilities: Bond interest payable $16,333 2,000 Current Portion, Bank Loan 648,576 14% Bond payable Bank Loan $16,000 Shareholders' equity: Common stock (6000 outstanding, unlimited authorized) 48,000 Contributed capital, common shares 71 $20 non-cumulative, callable, redeemable preferred stock (50 outstanding, 500,000 authorized) 1,800 Retained earnings 2,200,217 FINANCING & INVESTING CASE It was February 28th, 2021 and Agnes Kahkeetoomayou was looking to finalize the accounting activities for her finance and investing for the year. She had gathered select account balances (exhibit 1) and wanted to complete the appropriate transactions for the following events: TRADING INVESTMENTS On April 30th, 2020 Agnes purchased 200 (five year bonds) with a coupon of 10% interest for the prevailing market rate of 14% the bonds were set to mature on March 31st, 2024. At fiscal year end the current market rate was 8% and they decided to sell 25% of T/I bonds at market rate plus accrued interest. On June 15th, Agnes purchased 3500 shares of Surge Copper Corp. for $0.40 per share plus a flat $77 transaction fee. On July 17th Agnes traded 500 shares for a new tablet with a retail value of $300, the shares were trading for $0.45 that day. On July 25th Surge Copper had declared a 10% stock dividend per share with a date of record of August 21st and a date of distribution of August 27th. On February 20th, 2021 Surge declared a dividend of $2 per share to be paid in March. The shares were trading for $0.70 per share on February 25th so they decided to sell 1/3 of their shares that day. At fiscal year end the shares were trading for $0.90 per share. DEBT FINANCING The business had bank loan from back in 2008 with a 20-year variable rate and was to be repaid in equal installments over the life of the loan. Payments were automatically withdrawn from the company's account at the end of each month for the principal plus interest. Withdrawals for the year related to this total $2500. The business had 700 bonds they had issued long ago when the prevailing market rate for new ventures like theirs was 18%. The bond paid interest every June 30th and December 31st. They desired to buyout the debt early, so they did so on October 31st using a repurchase option at 85. EQUITY FINANCING No dividends were paid the previous year. On May 3rd, Agnes repurchased 800 common shares for $13 per share. On August 15th they declared a 10% stock dividend with a date of record of August 18th and distribution on the 28th of August. Shares of common stock traded for $7 on the date of declaration and $9 on the date of distribution. Agnes split the common stocks 2:1 on Nov 17th On Feb 25th a $0.10 dividend was declared to be paid in the next fiscal year. REQUIRED As Agnes complete the financial transactions using a Super T. Only Microsoft Word or Excel a will be accepted. Exhibit 1 Select account balances As at February 28th, 2020 Liabilities: Bond interest payable $16,333 2,000 Current Portion, Bank Loan 648,576 14% Bond payable Bank Loan $16,000 Shareholders' equity: Common stock (6000 outstanding, unlimited authorized) 48,000 Contributed capital, common shares 71 $20 non-cumulative, callable, redeemable preferred stock (50 outstanding, 500,000 authorized) 1,800 Retained earnings 2,200,217