Question 3 (25 maris) Subsequent to the legalization of woed in Canada, Cannabis Den was incorporated in Ontario 2019 with 5 initial shareholders, who were wealthy cannabis enthusiasts in London, Ontario The company had an unlimited number of common shares authored, and 200.000 preferred the with a $1.70 dividend rate authorized. The following transactions took place during the first year of operations (2019) with respect to these classes of shares (Cannabis Den followed ASPE) Feb. 2840.000 common shares were sold by subscription to 10 employees, who each purchased 4,000 shares for $15 per share. 40% of the amount was paid in cash immediately. The balance was to be paid by January 31, 2020, at which time the shares would be March 165,000 common shares were sold by subscription to London resident, who each purchased 13,000 shares for 518 per share. 50% of the amount was paid in cash immediately with the balance to be paid by December 31, 2019. Shares were to bed when the full payment was received May 13 - 30,000 common shares were directly sold to a private equity fond for $20 per share through an underwriter. The underwriter charged Cannabis Desconsin on the sale Nov. 23. Cannabis Den solda bundle of shares, including 4000 common share and 3,000 preferred to a wealthy family, for a total of $15,000The fair value of the preferred was difficult to determine, but the transaction price on May 13 was used to estimate the value of the common share portion of the bundled sale Dec 31 of the London area residents that subscribed for common shares on March 1, 3 paid the balance of the purchase price, and subscribers defled. Cannabis Dea's policy on share subscription defits is to reduce the number of shares with the number of shared reflecting payments already received prior to default Dec 31 - Camus Den received a bill of $18.800 from a local accounting firm for the work on thence of common shares. As well, Cannabis paid $11.500 to a local law firm for the work on the ance of common shares Required (A) Prepare youmal entries for each of the traction serve in 2019 Prepare the wholders equity wife of financial positio Dec 1, 2010 Question 3 (25 maris) Subsequent to the legalization of woed in Canada, Cannabis Den was incorporated in Ontario 2019 with 5 initial shareholders, who were wealthy cannabis enthusiasts in London, Ontario The company had an unlimited number of common shares authored, and 200.000 preferred the with a $1.70 dividend rate authorized. The following transactions took place during the first year of operations (2019) with respect to these classes of shares (Cannabis Den followed ASPE) Feb. 2840.000 common shares were sold by subscription to 10 employees, who each purchased 4,000 shares for $15 per share. 40% of the amount was paid in cash immediately. The balance was to be paid by January 31, 2020, at which time the shares would be March 165,000 common shares were sold by subscription to London resident, who each purchased 13,000 shares for 518 per share. 50% of the amount was paid in cash immediately with the balance to be paid by December 31, 2019. Shares were to bed when the full payment was received May 13 - 30,000 common shares were directly sold to a private equity fond for $20 per share through an underwriter. The underwriter charged Cannabis Desconsin on the sale Nov. 23. Cannabis Den solda bundle of shares, including 4000 common share and 3,000 preferred to a wealthy family, for a total of $15,000The fair value of the preferred was difficult to determine, but the transaction price on May 13 was used to estimate the value of the common share portion of the bundled sale Dec 31 of the London area residents that subscribed for common shares on March 1, 3 paid the balance of the purchase price, and subscribers defled. Cannabis Dea's policy on share subscription defits is to reduce the number of shares with the number of shared reflecting payments already received prior to default Dec 31 - Camus Den received a bill of $18.800 from a local accounting firm for the work on thence of common shares. As well, Cannabis paid $11.500 to a local law firm for the work on the ance of common shares Required (A) Prepare youmal entries for each of the traction serve in 2019 Prepare the wholders equity wife of financial positio Dec 1, 2010
