It was April 2020, and Claire Tiderc, owner and founder of BeanCountr Inc., was reviewing the company's financial performance for its third fiscal year. BeanCountr was a financial technology (fin-tech) start-up located in Toronto, Ontario, Canada. Tidere had already reviewed the company's operating decisions over the past fiscal year and was now eager to review the company's various financing and investing transactions. Tiderc downloaded BeanCountr's fiscal 2019 balance sheet (Exhibit 1), prepared under International Financial Reporting Standards (IFRS), and began to work DEBT FINANCING On February 19, 2020, BeanCountr secured a $15,000 line of credit from the bank. Interest was charged at a floating interest rate on the amount borrowed. On February 27, 2020, BeanCountr borrowed 58,900 on the line of credit. On March 11, 2020, BeanCountr repaid $2,090 on the line of credit. On March 31, 2020, BeanCountr paid $35 in cash for the accrued interest for the months of February and March. To help fund a new project, BeanCountr issued 20, four per cent, five-year bonds on February 1, 2020 in exchange for $20,922. The coupon was distributed semi-annually on August I and February 1. At the time the bonds were issued, the market interest rate was three per cent. At fiscal year-end, the market interest rate had increased to five per cent On July 15, 2017, BeanCountr issued 40, callable' ten-year bonds. The bonds paid an annual coupon rate of 8.5 per cent that was distributed semi-annually on January 15 and July 15. At the time the bonds were issued, the market interest rate was ten per cent. BeanCountr recalled 60 per cent of the outstanding bonds on February 15, 2020 when the market interest rate was nine per cent. EQUITY FINANCING On the date of incorporation, Tiderc contributed $83,600 in exchange for 3,800 BeanCountr common shares. On that same date, Tidere issued 1,500 $4, cumulative, convertible, preferred shares to her friends and family in exchange for $79,800. Preferred shares could be converted at any time to common shares at a rate of two common shares for each preferred share. BeanCountr declared a one per cent stock dividend to common shareholders on September 17,2019 when its shares were trading at $21.75. The dividend had a date of record of September 23, 2019 and would be distributed on October 9, 2019. On the date of record, the shares were trading at $21.85. On the date of distribution, the share price had increased to $21.90 The 8.5 per cent bonds were calable at 95 at the option of BeanCountr. Ten per cent of the outstanding preferred shares were converted to common shares on October 30, 2019. On the date of conversion, common shares were trading at $22.35 and preferred shares were trading at $47.90. On January 26, 2020. BeanCountr repurchased and retired 40 per cent of its outstanding preferred shares when the preferred shares were trading at $53.85. BeanCountr incurred a $145 brokerage commission on the repurchase of its shares. BeanCountr declared S0.90 per share cash dividend to common shareholders on March 28, 2020 when its shares were trading at $12.50. The dividend had a date of record of April 3, 2020 and would be distributed on April 18, 2020. At fiscal year-end, cornmon and preferred shares were trading at $19.22 and S54.85 respectively TRADING INVESTMENTS BeanCountr owned 1,000 common shares of Rambutan Ltd. at the beginning of fiscal 2020. On April 19, 2019, Rambutan declared a common dividend of S.35 per share. The date of record for the dividend was April 25, 2019. and the date of distribution was May 7, 2019. On August 15, 2019, Rambutan declared a three per cent stock dividend when the shares were trading at $27.40. The date of record for the dividend was August 26, 2019 and the date of distribution was September 8, 2019. On the date of record, the shares were trading at $27.30. On the date of distribution, the share price had fallen to $26.95. At BeanCountr's 2020 fiscal year-end, Rambutan's common shares were trading at $26.65 per share. On April 15, 2019, BeanCountr purchased 80, 10-year Maillot Electric Corp. bonds when the market interest rate was eight per cent. When purchasing the bonds, BeanCountr paid $89,880, which included accrued interest and a $375 brokerage fee. The bonds were first issued on November 15, 2015 when the market interest rate was seven per cent. The bond paid an annual coupon rate of 9.5 per cent on November 15 and May 15 each year. On October 30, 2019, BeanCountr sold 25 per cent of the Maillot Electric Corp. bonds when the bonds were trading at 113, incurring a brokerage commission of $165. By fiscal year-end, the market interest rate was six per cent. REQUIRED As Claire Tiderc, using the provided super-T, record all the necessary transactions and adjusting entries for BeanCountr Inc.'s fiscal year, ending March 31, 2020. Closing entries are not required. 2 Between January 15, 2019 and March 31, 2019, the bond had been amortized by $55. Dividends were last declared on October 15, 2018. PRESENT VALUE TABLES TABLE 1: Present value of $1 Inl Periods 1X 15% 2% 2.5% 3% 43 45% 5% 5% 99 10 1 2 3 4 5 6 7 9 10 11 12 13 0.99010 0.98030 0.97059 0.56098 0.95147 0.94205 0.93272 0.92348 0.91434 0.90529 0.89672 0.88745 0.87866 0.86996 0.86135 0.85282 0.84438 0.83602 0.82774 081954 0.58522 0.97066 0.95632 0.94218 0.92826 0.91454 090103 0.88771 0.87459 86167 0.84893 0.83639 0.82403 DR1185 0.79985 0.78803 0.77639 0.76491 0.75361 0.74247 0.98039 0.96117 0.94232 0.92385 0.90573 18797 0.87056 085349 0.83676 082035 0.80426 0.78849 0.72303 0.75788 0.74301 0.72845 0.71416 0.70016 068543 0.67297 0.97561 095181 0.92850 090595 DERAS 0.86230 0.84127 12075 0.80073 0.78120 0.75214 0.74356 0.72542 0.70773 0.69047 0.67362 0.65720 0.64117 0.6255 061027 097087 0.95618 0.94260 093351 0.91514 D290194 02849 0.87144 0.86261 0.84197 0.83748 081350 0.81300 0.78599 0.78941 0.75941 0.76642 0.73373 0.74409 0.70892 072242 0.58495 0.70138 066178 0.68095 1.61900 0.66112 0.61778 0.64186 0.59689 062317 0.57671 0.60502 0.55720 0.58739 0.53836 0.57029 0.52016 055368050257 0.96154 0.92456 0.900 0.85480 0.82193 0.29031 0.75992 73059 0.70259 0.57556 064958 0.62460 060057 0.57748 055526 053391 05133 0.49363 0.47464 0.45639 0.95694 0.91573 0.37530 ORR56 080245 0.76790 0.73483 0.70319 0.67290 0.54393 0.51520 0 58956 0.56427 05392 0.51622 049447 0.47318 0.45280 0.43330 0.41454 0.95238 0.90703 0.85384 0.82270 0.78353 0.74622 0.7106 0.67684 0.54461 0.61391 58468 0.55684 051032 0.50507 04102 0.45811 0.43630 0.41552 039573 037689 0.94340 D29000 0.23962 0.79209 0.74726 0.70496 0.66506 0.52741 0.59190 0.55839 OS2679 0.49697 084 0.44230 0.41727 0.39365 037136 0.350344 0.33051 0.31180 093458 092593 0.87344 085734 0.81530 0.79383 0.76290 0.73903 0.71299 0.5805 0.56634 063017 0.62275 098369 0.58203 0.54027 0.54193 050025 OLSOR35 0.46319 0.47509 0.42688 0.44401 023911 0.41495 0.36720 0.38782 0.34046 0.35245 031524 033873 0.29189 031657 0.27027 0.29586 0.25025 0.27551 0.23171 0.25842 021455 0917300 036153 2545 0.77218 0.13 0.7081306301 0649052092 059627056 054703051315 O SOTT 046651 0.46043 0.02430 0.4224503855 038753 03569 035553 031853 032518 0.28965 0.79925 0.26333 027454 023939 025157 021763 0.23107 019754 01199 017985 019449 0.16351 017843014564 15 16 17 18 19 20 TABLE 2: Present value of an annuity of $1 1 PV 1 in Periods 13 1.5% 2% 2.5% 3% 3.5% 48 SX UX 7X SM 9% 10% 1 2 3 4 5 5 7 9 10 11 12 13 14 15 16 17 0.99010 0.98522 098039 0.97561 0.97087 0.56618 0.96154 0.95694 0.95238 0.94340 0.93458 1.97040 1.95582 1.94156 1.92742 191347 1.89969 188609 187267 1.85941 1.83339 1 80802 2.94099 2.91220 28833 2.85602 2.82851 2.80164 2.77509 2.74896 2.72325 2.67301 2.62432 3.90197 3.85438 3.80773 3.76197 3.71710 3.67308 21.62990 3.58753 3.54595 3.45511 338721 4.85343 4.78264 4.71346 4.64583 4.57971 4.51505 4,45182 438998 43294 4.21236 4.10020 5.79548 5.69719 5460143 5.50813 5.41719 532855 5.24214 5.15787 5.07569 4.91732 4.76654 6.72819 6.59821 6.47199 6.34939 623028 6.11454 600205 5.89270 5.78617 5.58238 538929 7.65168 7.48593 7.32548 7.17014 7.01969 6.87396 6.73274 6.59589 6.46321 6.20979 5.97130 8.56602 8.36052 8.16224 7.97087 7.78611 7.60769 7.43533 7.26879 7.10782 6.80169 6.51523 9.47130 9.22218 8.38259 8.75206 853020 8.31661 8.11090 791272 7.72173 7.36009 7.02358 10.36763 10.07112 9.78685 9.51421 9.25262 9.00155 8.76048 8.52892 1.30641 7.88687 7.49862 11 25508 10.90751 10.57534 1025776 9.95400 9.66333 5.38507 9.11858 8.86325 B3R384 704269 12.13374 11.73153 11.34837 10.98318 10 63496 10.30274 9.98565 9.682R5 9.39357 8.85268 2.35755 13.00370 12.54338 12 10625 1169091 11.29607 10.92052 10.56312 10.22283 9.99864 9.29498 8.74547 13.86505 13.34323 12.84926 12.38118 11.91794 1151741 1111839 10.73955 10.37966 9,71225 9.10291 14.71787 14,13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10,83777 10.10590 9.44665 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11 27407 10.47726 9.75322 16.39827 15.67256 14.99203 1435336 13.75351 13. 18968 12659.30 12.15999 11.68959 10.82760 10.05909 17.22601 1642617 15.67846 14.97889 14 32380 13.70984 13.133M 12.59329 12.08532 11 1512 10 33560 18.04555 17.16864 16.35143 1558916 14.87747 1421240 11 59033 13 00794 12.46221 11.46992 10.59401 992593 091743 090109 1.78326 1.75911 1.73554 257710 2.53129 2.48685 3.31213 3.2.1972 3.16987 3.99271 3.88965 3.79079 4.62288 4.35525 5.20637 5.032954.36842 5.74664553482533493 6.24689 5.99525 5.75902 6.7100 6.41766614457 7.13896 5.80519 5.49506 2.51608 7.16073 6.81369 7.90378 7.48690 7.103:36 8.24424 7.78615 7.36669 855945 8.06069 7606 8.852 31256 782171 912164 8.5436 8.02155 9.17 3.75563 8. 20141 9.60360 8.95011 L36492 9.81815 912855 8.51356 19 20 It was April 2020, and Claire Tiderc, owner and founder of BeanCountr Inc., was reviewing the company's financial performance for its third fiscal year. BeanCountr was a financial technology (fin-tech) start-up located in Toronto, Ontario, Canada. Tidere had already reviewed the company's operating decisions over the past fiscal year and was now eager to review the company's various financing and investing transactions. Tiderc downloaded BeanCountr's fiscal 2019 balance sheet (Exhibit 1), prepared under International Financial Reporting Standards (IFRS), and began to work DEBT FINANCING On February 19, 2020, BeanCountr secured a $15,000 line of credit from the bank. Interest was charged at a floating interest rate on the amount borrowed. On February 27, 2020, BeanCountr borrowed 58,900 on the line of credit. On March 11, 2020, BeanCountr repaid $2,090 on the line of credit. On March 31, 2020, BeanCountr paid $35 in cash for the accrued interest for the months of February and March. To help fund a new project, BeanCountr issued 20, four per cent, five-year bonds on February 1, 2020 in exchange for $20,922. The coupon was distributed semi-annually on August I and February 1. At the time the bonds were issued, the market interest rate was three per cent. At fiscal year-end, the market interest rate had increased to five per cent On July 15, 2017, BeanCountr issued 40, callable' ten-year bonds. The bonds paid an annual coupon rate of 8.5 per cent that was distributed semi-annually on January 15 and July 15. At the time the bonds were issued, the market interest rate was ten per cent. BeanCountr recalled 60 per cent of the outstanding bonds on February 15, 2020 when the market interest rate was nine per cent. EQUITY FINANCING On the date of incorporation, Tiderc contributed $83,600 in exchange for 3,800 BeanCountr common shares. On that same date, Tidere issued 1,500 $4, cumulative, convertible, preferred shares to her friends and family in exchange for $79,800. Preferred shares could be converted at any time to common shares at a rate of two common shares for each preferred share. BeanCountr declared a one per cent stock dividend to common shareholders on September 17,2019 when its shares were trading at $21.75. The dividend had a date of record of September 23, 2019 and would be distributed on October 9, 2019. On the date of record, the shares were trading at $21.85. On the date of distribution, the share price had increased to $21.90 The 8.5 per cent bonds were calable at 95 at the option of BeanCountr. Ten per cent of the outstanding preferred shares were converted to common shares on October 30, 2019. On the date of conversion, common shares were trading at $22.35 and preferred shares were trading at $47.90. On January 26, 2020. BeanCountr repurchased and retired 40 per cent of its outstanding preferred shares when the preferred shares were trading at $53.85. BeanCountr incurred a $145 brokerage commission on the repurchase of its shares. BeanCountr declared S0.90 per share cash dividend to common shareholders on March 28, 2020 when its shares were trading at $12.50. The dividend had a date of record of April 3, 2020 and would be distributed on April 18, 2020. At fiscal year-end, cornmon and preferred shares were trading at $19.22 and S54.85 respectively TRADING INVESTMENTS BeanCountr owned 1,000 common shares of Rambutan Ltd. at the beginning of fiscal 2020. On April 19, 2019, Rambutan declared a common dividend of S.35 per share. The date of record for the dividend was April 25, 2019. and the date of distribution was May 7, 2019. On August 15, 2019, Rambutan declared a three per cent stock dividend when the shares were trading at $27.40. The date of record for the dividend was August 26, 2019 and the date of distribution was September 8, 2019. On the date of record, the shares were trading at $27.30. On the date of distribution, the share price had fallen to $26.95. At BeanCountr's 2020 fiscal year-end, Rambutan's common shares were trading at $26.65 per share. On April 15, 2019, BeanCountr purchased 80, 10-year Maillot Electric Corp. bonds when the market interest rate was eight per cent. When purchasing the bonds, BeanCountr paid $89,880, which included accrued interest and a $375 brokerage fee. The bonds were first issued on November 15, 2015 when the market interest rate was seven per cent. The bond paid an annual coupon rate of 9.5 per cent on November 15 and May 15 each year. On October 30, 2019, BeanCountr sold 25 per cent of the Maillot Electric Corp. bonds when the bonds were trading at 113, incurring a brokerage commission of $165. By fiscal year-end, the market interest rate was six per cent. REQUIRED As Claire Tiderc, using the provided super-T, record all the necessary transactions and adjusting entries for BeanCountr Inc.'s fiscal year, ending March 31, 2020. Closing entries are not required. 2 Between January 15, 2019 and March 31, 2019, the bond had been amortized by $55. Dividends were last declared on October 15, 2018. PRESENT VALUE TABLES TABLE 1: Present value of $1 Inl Periods 1X 15% 2% 2.5% 3% 43 45% 5% 5% 99 10 1 2 3 4 5 6 7 9 10 11 12 13 0.99010 0.98030 0.97059 0.56098 0.95147 0.94205 0.93272 0.92348 0.91434 0.90529 0.89672 0.88745 0.87866 0.86996 0.86135 0.85282 0.84438 0.83602 0.82774 081954 0.58522 0.97066 0.95632 0.94218 0.92826 0.91454 090103 0.88771 0.87459 86167 0.84893 0.83639 0.82403 DR1185 0.79985 0.78803 0.77639 0.76491 0.75361 0.74247 0.98039 0.96117 0.94232 0.92385 0.90573 18797 0.87056 085349 0.83676 082035 0.80426 0.78849 0.72303 0.75788 0.74301 0.72845 0.71416 0.70016 068543 0.67297 0.97561 095181 0.92850 090595 DERAS 0.86230 0.84127 12075 0.80073 0.78120 0.75214 0.74356 0.72542 0.70773 0.69047 0.67362 0.65720 0.64117 0.6255 061027 097087 0.95618 0.94260 093351 0.91514 D290194 02849 0.87144 0.86261 0.84197 0.83748 081350 0.81300 0.78599 0.78941 0.75941 0.76642 0.73373 0.74409 0.70892 072242 0.58495 0.70138 066178 0.68095 1.61900 0.66112 0.61778 0.64186 0.59689 062317 0.57671 0.60502 0.55720 0.58739 0.53836 0.57029 0.52016 055368050257 0.96154 0.92456 0.900 0.85480 0.82193 0.29031 0.75992 73059 0.70259 0.57556 064958 0.62460 060057 0.57748 055526 053391 05133 0.49363 0.47464 0.45639 0.95694 0.91573 0.37530 ORR56 080245 0.76790 0.73483 0.70319 0.67290 0.54393 0.51520 0 58956 0.56427 05392 0.51622 049447 0.47318 0.45280 0.43330 0.41454 0.95238 0.90703 0.85384 0.82270 0.78353 0.74622 0.7106 0.67684 0.54461 0.61391 58468 0.55684 051032 0.50507 04102 0.45811 0.43630 0.41552 039573 037689 0.94340 D29000 0.23962 0.79209 0.74726 0.70496 0.66506 0.52741 0.59190 0.55839 OS2679 0.49697 084 0.44230 0.41727 0.39365 037136 0.350344 0.33051 0.31180 093458 092593 0.87344 085734 0.81530 0.79383 0.76290 0.73903 0.71299 0.5805 0.56634 063017 0.62275 098369 0.58203 0.54027 0.54193 050025 OLSOR35 0.46319 0.47509 0.42688 0.44401 023911 0.41495 0.36720 0.38782 0.34046 0.35245 031524 033873 0.29189 031657 0.27027 0.29586 0.25025 0.27551 0.23171 0.25842 021455 0917300 036153 2545 0.77218 0.13 0.7081306301 0649052092 059627056 054703051315 O SOTT 046651 0.46043 0.02430 0.4224503855 038753 03569 035553 031853 032518 0.28965 0.79925 0.26333 027454 023939 025157 021763 0.23107 019754 01199 017985 019449 0.16351 017843014564 15 16 17 18 19 20 TABLE 2: Present value of an annuity of $1 1 PV 1 in Periods 13 1.5% 2% 2.5% 3% 3.5% 48 SX UX 7X SM 9% 10% 1 2 3 4 5 5 7 9 10 11 12 13 14 15 16 17 0.99010 0.98522 098039 0.97561 0.97087 0.56618 0.96154 0.95694 0.95238 0.94340 0.93458 1.97040 1.95582 1.94156 1.92742 191347 1.89969 188609 187267 1.85941 1.83339 1 80802 2.94099 2.91220 28833 2.85602 2.82851 2.80164 2.77509 2.74896 2.72325 2.67301 2.62432 3.90197 3.85438 3.80773 3.76197 3.71710 3.67308 21.62990 3.58753 3.54595 3.45511 338721 4.85343 4.78264 4.71346 4.64583 4.57971 4.51505 4,45182 438998 43294 4.21236 4.10020 5.79548 5.69719 5460143 5.50813 5.41719 532855 5.24214 5.15787 5.07569 4.91732 4.76654 6.72819 6.59821 6.47199 6.34939 623028 6.11454 600205 5.89270 5.78617 5.58238 538929 7.65168 7.48593 7.32548 7.17014 7.01969 6.87396 6.73274 6.59589 6.46321 6.20979 5.97130 8.56602 8.36052 8.16224 7.97087 7.78611 7.60769 7.43533 7.26879 7.10782 6.80169 6.51523 9.47130 9.22218 8.38259 8.75206 853020 8.31661 8.11090 791272 7.72173 7.36009 7.02358 10.36763 10.07112 9.78685 9.51421 9.25262 9.00155 8.76048 8.52892 1.30641 7.88687 7.49862 11 25508 10.90751 10.57534 1025776 9.95400 9.66333 5.38507 9.11858 8.86325 B3R384 704269 12.13374 11.73153 11.34837 10.98318 10 63496 10.30274 9.98565 9.682R5 9.39357 8.85268 2.35755 13.00370 12.54338 12 10625 1169091 11.29607 10.92052 10.56312 10.22283 9.99864 9.29498 8.74547 13.86505 13.34323 12.84926 12.38118 11.91794 1151741 1111839 10.73955 10.37966 9,71225 9.10291 14.71787 14,13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10,83777 10.10590 9.44665 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11 27407 10.47726 9.75322 16.39827 15.67256 14.99203 1435336 13.75351 13. 18968 12659.30 12.15999 11.68959 10.82760 10.05909 17.22601 1642617 15.67846 14.97889 14 32380 13.70984 13.133M 12.59329 12.08532 11 1512 10 33560 18.04555 17.16864 16.35143 1558916 14.87747 1421240 11 59033 13 00794 12.46221 11.46992 10.59401 992593 091743 090109 1.78326 1.75911 1.73554 257710 2.53129 2.48685 3.31213 3.2.1972 3.16987 3.99271 3.88965 3.79079 4.62288 4.35525 5.20637 5.032954.36842 5.74664553482533493 6.24689 5.99525 5.75902 6.7100 6.41766614457 7.13896 5.80519 5.49506 2.51608 7.16073 6.81369 7.90378 7.48690 7.103:36 8.24424 7.78615 7.36669 855945 8.06069 7606 8.852 31256 782171 912164 8.5436 8.02155 9.17 3.75563 8. 20141 9.60360 8.95011 L36492 9.81815 912855 8.51356 19 20