Grouse Mountain Limited (GML), a widely held, December 31 year-end company, reported the following excerpted debt and equity accounts from its Statement of Financial Position as at December 31, 2020.

Preferred shares, $1.50; cumulative entitlement quarterly

issued and outstanding, 110,000 shares¹.......................................$4,675,000

Common shares, unlimited authorized, 915,000 shares issued

and outstanding..................................................................................$32,940,000

Common share subscriptions, net of receivable.............................$200,000

Bond conversion rights on convertible bonds.....................................$120,000

Contributed surplus, employee share options outstanding²............$160,000

Contributed surplus, expired fractional share rights, common.......... 20,000

Retained earnings...............................................................................$116,300,000

Accumulated Other Comprehensive Income.........................................$200,000

Convertible, $2,000,000, 4% debentures, due January 1, 2029,

net of unamortized discount................................................................$1,869,450³

¹Preferred shares are fully participating as to cash dividends only, based on the

relative dividend payout ratio carried to two decimal places (eg. .447 = .48)

after common share have received $.25 per share. No preferred dividends were

declared and paid in 2020; all dividends prior to 2020 have been paid. Any preferred share repurchases will require settling any unpaid dividend entitlements

accumulated to the date of repurchase.

²20,000 options are fully vested and expire in 2022 allowing the purchase of one

share for every option held at a purchase price of $20.00 per share.

³The convertible bonds were taken to market on January 1, 2020 at a 5% yield.

Interest is payable semi-annually on June 30 and January 1. Each $1,000

denominated bond is convertible into 30 common shares.

Required: Prepare the entries required to reflect the following events. If entries are not required, explain why.

The following events/transactions took place during 2021 in chronological order or at the dates so indicated:

1. Common shares were issued to employees under the terms of the existing outstanding share options. 18,000 options were exercised when the market share price was $45 per share. Holders of the remaining options left the company and gave up their option entitlement. (2)
2. 40,000 common shares were purchased and retired a price of $37.50 each. (2)
3. Under the company's bylaws, a 2% common stock dividend was declared and issued with a value assigned by the Board of Directors of $8 per share and resulting in no fractional share rights being issued. No entitlement is accorded the preferred shareholders in respect of stock dividends. ()
4. As an incentive to locate in the Mission area, GML was granted a building in an industrial park with a fair value of $750,000; which cost the municipality $250,000. This value was attributed to the beneficial interest of the preferred class of shares. ()
5. 10,000 treasury common shares were purchased at a price of $50 per share. ()
6. On July 1, 2021, 10,000 preferred shares were purchased and retired at $43.50 per share. (2)
7. On September 30, 2021, 75% of the convertible bondholders exercised their conversions rights. Prepare any update entries required from the most recent interest payment date in addition to the conversion and interest settlement entries. (5)
8. Share subscribers paid the final and only instalment of $80,000 and GML issued 10,000 common shares in completing the subscription contracts. (1)

9.3,000 treasury common shares were sold for $55 each. (2)

10 On December 28, 2021, the Board of Directors declared dividends of $599,915 to be accorded to the share classes as entitled. Round % to 2 decimal places. (5)