It was December 10, 2020, and Mackenzie Cook, founder of Move Inc., was reviewing the company's financial performance for its second fiscal year. Move was a virtual fitness training technology company located in Windsor, Ontario, Canada. Cook 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. Cook downloaded Move's fiscal 2019 balance sheet (Exhibit 1), prepared under International Financial Reporting Standards (IFRS), and began to work EQUITY FINANCING On the date of incorporation, Cook contributed $66,000 in exchange for 6,000 Move common shares. On that same date, Move issued 1,200 $3, non-cumulative, convertible, preferred shares to Cook's friends and family in exchange for $48,000. Preferred shares could be converted at any time to common shares at a rate of three common shares for each preferred share. Move declared a $0.50 per share cash dividend to common shareholders on January 5, 2020 when its shares were trading at $13.65. The dividend had a date of record of January 10, 2020 and was paid on January 20, 2020. On the date of distribution, the shares were trading at $15.70. On February 15, 2020, Move repurchased and retired 15 per cent of its outstanding common shares when the common shares were trading at $13.00. Move paid a $200 brokerage commission on the repurchase of its shares. On June 1, 2020. Move purchased a new trademark to help with the company's branding. The trademark cost $6,000 and was paid for with $3.000 cash and 200 common shares. At the time of purchase Move shares were trading at $17.36. On September 7, 2020. 25 per cent of the outstanding preferred shares were converted to common shares. On the date of conversion, common shares were trading at $19 and preferred shares were trading at $54.90. Move declared a five per cent stock dividend to common shareholders on November 20, 2020 when its shares were trading at $19.40. The dividend had a date of record of December 5, 2020 and would be distributed on December 12, 2020. At fiscal year-end, common and preferred shares were trading at $22.75 and $64.56 respectively. DEBT FINANCING On October 1, 2020, Move secured a $15,000 line of credit from the bank. Interest was charged at a floating interest rate on the amount borrowed. On October 6, 2020. Move borrowed $9,000 on the line of credit. On October 31, 2020, Move repaid $4.000 on the line of credit and $33 for all of the accrued interest for the month of October. At fiscal year-end, Move had accrued $22 of interest for the month of November. Move issued 25, four per cent, five-year bonds on April 1, 2020 in exchange for $22,867. The coupon was distributed semi-annually on April 1 and October 1. At the time the bonds were issued the market interest rate was six per cent. At fiscal year-end, the market interest rate had decreased to five per cent. On February 15, 2019, Move issued 40 callable ten-year bonds. The bonds paid an annual coupon rate of seven per cent that was distributed semi-annually on February 15 and August 15. At the time the bonds were issued, the market interest rate was five per cent. Move recalled one hundred per cent of the outstanding bonds on September 1, 2020 when the market interest rate was six per cent. TRADING INVESTMENTS Move owned 100 common shares of Timbuktu Inc. at the beginning of fiscal 2020. On February 2, 2020, Timbuktu declared a $2 per share cash dividend for common shareholders. The date of record for the dividend was February 8,2020, and the date of distribution was February 15, 2020. On November 18, 2020, as global stock prices increased, Move sold 50 per cent of its Timbuktu stock Timbuktu stock were trading at $115 per share and Move incurred a broker fee of $200. The proceeds would be remitted to Move on December 5, 2020. On November 25, 2020, Timbuktu declared a three for one stock split when its shares were trading at $130. At Move's 2020 fiscal year-end, Timbuktu's common shares were trading at $34.00 per share. On June 15, 2020, Move purchased 80, 10-year Snapbook bonds for $89,586, which included accrued interest and a $200 brokerage fee. On the date of purchase, the market interest rate was four per cent. The bonds were first issued on Jamuary 1, 2015 when the market interest rate was five per cent. The bond paid an annual coupon rate of six per cent on July 1 and January 1 each year. By fiscal year-end, the bonds were trading at 108. REQUIRED As Mackenzie Cook, using the provided super-T, record all the necessary transactions and adjusting entries for Move's fiscal year, ending November 30, 2020. Closing entries are not required. Exhibit 1 STATEMENT OF FINANCIAL POSITION As at November 30, 2019 ASSETS Current assets: Cash Accounts receivable Trading investment, stock Total curent assets $ 208,484 27,683 10.000 246.167 Total assets $ 246.167 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bond interest payable Total current liabilities $ 817 817 Long-term liabilities: 7% Bond payable Total long-term liabilities 45.846 45,846 Total liabilities 46.663 Shareholders' equity: Common stock (4,800 outstanding, unlimited authorized) Contributed capital, common stock $3 Non-cumulative, convertible, preferred stock (1,200 issued, 5.000 authorized) Retained earings Total shareholders' equity 52.800 1,020 48,000 97.684 199,504 Total liabilities and shareholders' equity S_246.167 Appendix A PRESENT VALUE TABLES TABLE 1: Present value of $1 PV: 1 1 + "- ml Periods 1: 1.5g 2.5 195 3.5g 56s 9 10: 1 2 3 4 5 6 E 9 10 11 12 13 14 15 16 17 1 19 20 0.99010 0.96030 0.97059 0.9609 0.95 147 0.94205 0.93272 0.92345 0.9143- 0.90529 0.69632 0.8E745 0.37666 0.6995 0.26135 0.5202 0.84438 0.33602 0.2274 0.1954 0.98522 0.97066 0.95532 0.9421 0.9226 0.91454 0.90103 0.HD771 0.67459 0.2516 0.64293 0.63519 0.2403 0.61185 0.7995 0703 077619 076491 0.75361 0.74247 0.96039 0.96117 0.94222 0.92355 0.90571 1. SE797 0.7056 0.3539 0.33676 0.22035 0.20426 0.76049 0.7703 0.7578E 0.7401 0.72045 0.71416 0.7C016 0.6661 0.57297 0.97561 0.95181 0.92 0.90595 0.65 0.26230 0.4127 0.22075 0.8073 0.76120 0.76214 0.74355 0.72542 0.70773 0.69047 0.57352 0.65720 0.64117 0.52553 0.51027 0.97087 0.56518 0.9420 0.93351 091514 0.90194 0.4$649 0.714 0.55261 0.64197 0.374 0.1350 0.81309 076599 0.76941 075941 0.75642 0.73373 0.74409 0.7092 0.72242 0.60495 0.7013 0.66178 0.6395 0.63940 0.66112 0.61778 0.64165 0.59669 0.52317 0.57571 0.60502 0.55720 0.55739 053636 0.57029 0.52016 0.5536 0.5025 0.96154 0.92456 0.900 0.2540 0.22193 0.7031 0.75992 0.73059 0.70259 0.57556 0.54956 0.62460 0.6C057 0.574E 0.55526 0.53391 0.51337 0.49] 0.47454 0.4569 0.9569- 0.91573 0.7630 0.356 0.20245 0.76790 0.714 0.70319 0.67290 0.4393 0.61620 0.5f96 0.56427 0.53997 0.5172 0.49447 0.4731 0.52 0.43330 0.1464 09522 0.90703 0.6534 0.32270 0.7353 0.74622 0.7106 0.57654 0.54461 0.61191 0.545 0.556 0.53032 0.50507 0.46102 0.45611 0.43630 0.41952 039573 0.37609 0.94140 0.49000 0.3962 0.79209 0.74726 0.70496 0.55506 0.52741 0.59190 055639 0.52679 0.4969 0.466D4 0.4420 0.41727 0.39365 0.37135 0.350 033051 0.1 0.93456 0.87344 0.61530 076290 071293 0.66534 0.62275 0.50201 0.54393 0.50 35 0.4759 0.44401 0.41456 037 036245 0.13873 031557 029566 0.27551 0.25842 0.92593 0.25734 0.79363 073503 0.66050 0.63013 0.50349 0.54027 0.5002 0.46319 0.42EEN 039711 03670 0.34046 031524 02919 02727 0.25025 0.23171 0.21455 091743 0.90909 084166 0.82645 07721 0.35131 0.70843 0.61 0.64993 0.62092 0.59627 0.56447 054703 0.51316 0.5017 0.46651 0.46043 0.42410 0.42241 0.3554 0.33753 0.35049 035553 0.163 0.32618 0.966 029925 0.26333 027.54 0.23939 025187 0.21763 02107 0.19764 021199 0.17966 0.19449 0.15351 0.17843 0.1464 TABLE 2: Present value of an annuity of $1 1- PV = ml Periods 1 15% 2.5% 196 3.5g 9% 10: 1 2 3 5 7 9 10 11 1 wuuuubunk 0.99010 0.96522 09039 0.97561 0.97067 0.96 0.96154 1.9700 1.9550 1.94155 192742 19147 11999 1. 6509 2.94099 291220 2.8388 2.65602 2.62661 2014 2.77509 3.90197 3.45432 3.10773 3.76197 3.71710 3.6730 3.52990 4.2543 4726 4.1345 4.64563 4.57971 4.51505 45162 5.79545 5.69719 5.014: 5.50 13 5.41719 5.32555 5.24214 6.72619 659621 6.47199 634919 6.23028 6.11454 6.00205 7.55165 7.42593 7.32545 7.17014 7.01969 6.67396 6.73274 3.56602 4.36052 4.16224 7.9707 7.78611 7.60769 7.43533 9.47130 9.22213 3.9%259 E75206 E53020 E31661 2.11090 10.35763 10.07112 9.76 9.51421 9.25262 9.00155 3.760- 11.2550 10.90751 10.57534 10.25776 9.95400 9.66333 9.36507 12.13374 11.73153 11.34637 10.90318 10.63496 10.30274 9.9565 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 13.86505 1334323 12.24925 1231131 11.9374 11.51741 11.11439 10.73955 10.37966 9.71225 9.10791 14.71787 14.15125 13.5771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.10590 9.44565 15.55225 14.90765 14.2917 13.71220 13.16612 12.551 12.16557 11.70719 11.27407 10.47725 9.76322 16.39E27 15.67255 14.99203 14.35336 1.75351 13.16960 12.65930 12.15999 11.6959 10.82760 10.05909 17.22601 16.42617 15.67645 14.97SE9 14.3230 13.7094 11.11394 12.59329 12.02532 11.1512 10.33560 18.04555 17.16664 16.35143 15.50916 14.E777 14.2120 11.59033 13.00794 12.45221 11.45992 10.59401 93 0.91743 26 1.5911 10 2.53129 133.21972 71 3.E965 GE ,592 37 5.03295 4 5.53482 9 5.99525 06 5.41756 96 6.20519 0 716071 70 7,6690 -24 1.76615 6.55940 3.06069 E.E517 2.31256 9.1164 2.54353 9.3719 3.75553 9.0360 ,95011 9.E1315 9.12855 0.90909 1.73554 2.4G635 2.1697 3.79079 4.35526 4,642 5.33493 5.75902 6.14457 5.49-06 6.1369 7.1036 7.6669 7.60606 7.2371 0215 3.20141 36492 3.51356 14 19 20 It was December 10, 2020, and Mackenzie Cook, founder of Move Inc., was reviewing the company's financial performance for its second fiscal year. Move was a virtual fitness training technology company located in Windsor, Ontario, Canada. Cook 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. Cook downloaded Move's fiscal 2019 balance sheet (Exhibit 1), prepared under International Financial Reporting Standards (IFRS), and began to work EQUITY FINANCING On the date of incorporation, Cook contributed $66,000 in exchange for 6,000 Move common shares. On that same date, Move issued 1,200 $3, non-cumulative, convertible, preferred shares to Cook's friends and family in exchange for $48,000. Preferred shares could be converted at any time to common shares at a rate of three common shares for each preferred share. Move declared a $0.50 per share cash dividend to common shareholders on January 5, 2020 when its shares were trading at $13.65. The dividend had a date of record of January 10, 2020 and was paid on January 20, 2020. On the date of distribution, the shares were trading at $15.70. On February 15, 2020, Move repurchased and retired 15 per cent of its outstanding common shares when the common shares were trading at $13.00. Move paid a $200 brokerage commission on the repurchase of its shares. On June 1, 2020. Move purchased a new trademark to help with the company's branding. The trademark cost $6,000 and was paid for with $3.000 cash and 200 common shares. At the time of purchase Move shares were trading at $17.36. On September 7, 2020. 25 per cent of the outstanding preferred shares were converted to common shares. On the date of conversion, common shares were trading at $19 and preferred shares were trading at $54.90. Move declared a five per cent stock dividend to common shareholders on November 20, 2020 when its shares were trading at $19.40. The dividend had a date of record of December 5, 2020 and would be distributed on December 12, 2020. At fiscal year-end, common and preferred shares were trading at $22.75 and $64.56 respectively. DEBT FINANCING On October 1, 2020, Move secured a $15,000 line of credit from the bank. Interest was charged at a floating interest rate on the amount borrowed. On October 6, 2020. Move borrowed $9,000 on the line of credit. On October 31, 2020, Move repaid $4.000 on the line of credit and $33 for all of the accrued interest for the month of October. At fiscal year-end, Move had accrued $22 of interest for the month of November. Move issued 25, four per cent, five-year bonds on April 1, 2020 in exchange for $22,867. The coupon was distributed semi-annually on April 1 and October 1. At the time the bonds were issued the market interest rate was six per cent. At fiscal year-end, the market interest rate had decreased to five per cent. On February 15, 2019, Move issued 40 callable ten-year bonds. The bonds paid an annual coupon rate of seven per cent that was distributed semi-annually on February 15 and August 15. At the time the bonds were issued, the market interest rate was five per cent. Move recalled one hundred per cent of the outstanding bonds on September 1, 2020 when the market interest rate was six per cent. TRADING INVESTMENTS Move owned 100 common shares of Timbuktu Inc. at the beginning of fiscal 2020. On February 2, 2020, Timbuktu declared a $2 per share cash dividend for common shareholders. The date of record for the dividend was February 8,2020, and the date of distribution was February 15, 2020. On November 18, 2020, as global stock prices increased, Move sold 50 per cent of its Timbuktu stock Timbuktu stock were trading at $115 per share and Move incurred a broker fee of $200. The proceeds would be remitted to Move on December 5, 2020. On November 25, 2020, Timbuktu declared a three for one stock split when its shares were trading at $130. At Move's 2020 fiscal year-end, Timbuktu's common shares were trading at $34.00 per share. On June 15, 2020, Move purchased 80, 10-year Snapbook bonds for $89,586, which included accrued interest and a $200 brokerage fee. On the date of purchase, the market interest rate was four per cent. The bonds were first issued on Jamuary 1, 2015 when the market interest rate was five per cent. The bond paid an annual coupon rate of six per cent on July 1 and January 1 each year. By fiscal year-end, the bonds were trading at 108. REQUIRED As Mackenzie Cook, using the provided super-T, record all the necessary transactions and adjusting entries for Move's fiscal year, ending November 30, 2020. Closing entries are not required. Exhibit 1 STATEMENT OF FINANCIAL POSITION As at November 30, 2019 ASSETS Current assets: Cash Accounts receivable Trading investment, stock Total curent assets $ 208,484 27,683 10.000 246.167 Total assets $ 246.167 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bond interest payable Total current liabilities $ 817 817 Long-term liabilities: 7% Bond payable Total long-term liabilities 45.846 45,846 Total liabilities 46.663 Shareholders' equity: Common stock (4,800 outstanding, unlimited authorized) Contributed capital, common stock $3 Non-cumulative, convertible, preferred stock (1,200 issued, 5.000 authorized) Retained earings Total shareholders' equity 52.800 1,020 48,000 97.684 199,504 Total liabilities and shareholders' equity S_246.167 Appendix A PRESENT VALUE TABLES TABLE 1: Present value of $1 PV: 1 1 + "- ml Periods 1: 1.5g 2.5 195 3.5g 56s 9 10: 1 2 3 4 5 6 E 9 10 11 12 13 14 15 16 17 1 19 20 0.99010 0.96030 0.97059 0.9609 0.95 147 0.94205 0.93272 0.92345 0.9143- 0.90529 0.69632 0.8E745 0.37666 0.6995 0.26135 0.5202 0.84438 0.33602 0.2274 0.1954 0.98522 0.97066 0.95532 0.9421 0.9226 0.91454 0.90103 0.HD771 0.67459 0.2516 0.64293 0.63519 0.2403 0.61185 0.7995 0703 077619 076491 0.75361 0.74247 0.96039 0.96117 0.94222 0.92355 0.90571 1. SE797 0.7056 0.3539 0.33676 0.22035 0.20426 0.76049 0.7703 0.7578E 0.7401 0.72045 0.71416 0.7C016 0.6661 0.57297 0.97561 0.95181 0.92 0.90595 0.65 0.26230 0.4127 0.22075 0.8073 0.76120 0.76214 0.74355 0.72542 0.70773 0.69047 0.57352 0.65720 0.64117 0.52553 0.51027 0.97087 0.56518 0.9420 0.93351 091514 0.90194 0.4$649 0.714 0.55261 0.64197 0.374 0.1350 0.81309 076599 0.76941 075941 0.75642 0.73373 0.74409 0.7092 0.72242 0.60495 0.7013 0.66178 0.6395 0.63940 0.66112 0.61778 0.64165 0.59669 0.52317 0.57571 0.60502 0.55720 0.55739 053636 0.57029 0.52016 0.5536 0.5025 0.96154 0.92456 0.900 0.2540 0.22193 0.7031 0.75992 0.73059 0.70259 0.57556 0.54956 0.62460 0.6C057 0.574E 0.55526 0.53391 0.51337 0.49] 0.47454 0.4569 0.9569- 0.91573 0.7630 0.356 0.20245 0.76790 0.714 0.70319 0.67290 0.4393 0.61620 0.5f96 0.56427 0.53997 0.5172 0.49447 0.4731 0.52 0.43330 0.1464 09522 0.90703 0.6534 0.32270 0.7353 0.74622 0.7106 0.57654 0.54461 0.61191 0.545 0.556 0.53032 0.50507 0.46102 0.45611 0.43630 0.41952 039573 0.37609 0.94140 0.49000 0.3962 0.79209 0.74726 0.70496 0.55506 0.52741 0.59190 055639 0.52679 0.4969 0.466D4 0.4420 0.41727 0.39365 0.37135 0.350 033051 0.1 0.93456 0.87344 0.61530 076290 071293 0.66534 0.62275 0.50201 0.54393 0.50 35 0.4759 0.44401 0.41456 037 036245 0.13873 031557 029566 0.27551 0.25842 0.92593 0.25734 0.79363 073503 0.66050 0.63013 0.50349 0.54027 0.5002 0.46319 0.42EEN 039711 03670 0.34046 031524 02919 02727 0.25025 0.23171 0.21455 091743 0.90909 084166 0.82645 07721 0.35131 0.70843 0.61 0.64993 0.62092 0.59627 0.56447 054703 0.51316 0.5017 0.46651 0.46043 0.42410 0.42241 0.3554 0.33753 0.35049 035553 0.163 0.32618 0.966 029925 0.26333 027.54 0.23939 025187 0.21763 02107 0.19764 021199 0.17966 0.19449 0.15351 0.17843 0.1464 TABLE 2: Present value of an annuity of $1 1- PV = ml Periods 1 15% 2.5% 196 3.5g 9% 10: 1 2 3 5 7 9 10 11 1 wuuuubunk 0.99010 0.96522 09039 0.97561 0.97067 0.96 0.96154 1.9700 1.9550 1.94155 192742 19147 11999 1. 6509 2.94099 291220 2.8388 2.65602 2.62661 2014 2.77509 3.90197 3.45432 3.10773 3.76197 3.71710 3.6730 3.52990 4.2543 4726 4.1345 4.64563 4.57971 4.51505 45162 5.79545 5.69719 5.014: 5.50 13 5.41719 5.32555 5.24214 6.72619 659621 6.47199 634919 6.23028 6.11454 6.00205 7.55165 7.42593 7.32545 7.17014 7.01969 6.67396 6.73274 3.56602 4.36052 4.16224 7.9707 7.78611 7.60769 7.43533 9.47130 9.22213 3.9%259 E75206 E53020 E31661 2.11090 10.35763 10.07112 9.76 9.51421 9.25262 9.00155 3.760- 11.2550 10.90751 10.57534 10.25776 9.95400 9.66333 9.36507 12.13374 11.73153 11.34637 10.90318 10.63496 10.30274 9.9565 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 13.86505 1334323 12.24925 1231131 11.9374 11.51741 11.11439 10.73955 10.37966 9.71225 9.10791 14.71787 14.15125 13.5771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.10590 9.44565 15.55225 14.90765 14.2917 13.71220 13.16612 12.551 12.16557 11.70719 11.27407 10.47725 9.76322 16.39E27 15.67255 14.99203 14.35336 1.75351 13.16960 12.65930 12.15999 11.6959 10.82760 10.05909 17.22601 16.42617 15.67645 14.97SE9 14.3230 13.7094 11.11394 12.59329 12.02532 11.1512 10.33560 18.04555 17.16664 16.35143 15.50916 14.E777 14.2120 11.59033 13.00794 12.45221 11.45992 10.59401 93 0.91743 26 1.5911 10 2.53129 133.21972 71 3.E965 GE ,592 37 5.03295 4 5.53482 9 5.99525 06 5.41756 96 6.20519 0 716071 70 7,6690 -24 1.76615 6.55940 3.06069 E.E517 2.31256 9.1164 2.54353 9.3719 3.75553 9.0360 ,95011 9.E1315 9.12855 0.90909 1.73554 2.4G635 2.1697 3.79079 4.35526 4,642 5.33493 5.75902 6.14457 5.49-06 6.1369 7.1036 7.6669 7.60606 7.2371 0215 3.20141 36492 3.51356 14 19 20