Razul took the proceeds from dissolving the partnership and purchased a corporation selling electrical parts used for large production companies. He employs several people, but is looking to expand his operations further. In addition to expanding the sales of electrical parts, he also wants to start selling heating, ventilation and air conditioning (HVAC) parts and machinery through a separate division of the company called 'HVAC Parts & Machinery.' Currently, Razul owns all the shares in the corporation. To raise the needed cash, he decides to offer common and preferred shares for sale to investors starting in 2021. Below is the balance sheet at the end of 2020. Holister Electric Inc. Balance Sheet As at December 31, 2020 Assets Cash Liabilities $25,000, Accounts Payable Accounts Receivable 13,500 Uneamed Revenue Prepaid Insurance 3,600 Bank Loan Inventory 72,000 Total Liabilities $12,200 5,200 26,000 43,400 Property, Plant & Equipment 210,000 Shareholders' Equity Accumulated Depreciation -25,000 Common Shares-90,000 issued 90,000 Retained Earnings 165,700 Total Shareholder's Equity 255,700 Total Assets $299,100 Liabilities & Owner's Equity $299,100 d) On April 1, the company has extra cash on hand and would like to invest it in short-term bonds issued by Gamma Ltd. The company bought 20, $1,000 short term (one-year) bonds at par on this date and intended to sell these bonds before maturity. The interest rate on the bond is 9%, payable annually at March 31. On December 31, 2021, each bond was trading in the market at $1,020. On January 1, 2022, all bonds were sold for $21,000. e) On July 1, Holister purchased a $50,000, 5 year bond paying 6%. Interest is paid every 6 months on December 31 and June 30. The company plans to hold onto the bond until it matures. f) On November 23, the company purchased 2,000 shares of Daenerys Inc. at $19 per share for the purpose of trading. The shares are less than 4% of the total shares of Daenerys Inc. and are a non-strategic investment. By December 31, the price per share had gone up to $22 per share. g) During 2021, Holister Electric Inc. has performed well, so the board of directors decided to pay dividends. On November 30, 2021, the company declared cash dividends of $50,000, which will be paid out on December 15, 2021. Use the cash dividends method and close cash dividends at the end of the year