rrent Attempt in Progress Blossom Inc. (BI) is a backyard pond design and installation company. Bl was incorporated during 2023, with an unlimited number of common shares, and 51,000 preferred shares with a $3 dividend rate authorized. BI follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. Jan. Feb. 15 20 20 Mar. 3 The articles of incorporation were filed and state that an unlimited number of common shares and 51,000 preferred shares are authorized. 30,600 common shares were sold by subscription to 3 individuals, who each purchased 10,200 shares for $51 per share. The terms require 10% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2024, at which time the shares will be issued. 71,400 common shares were sold by subscription to 7 individuals, who each purchased 10,200 shares for $51 per share. The terms require that 10% of the balance be paid in cash immediately, with the balance to be paid by December 31, 2023. Shares are to be issued once the full payment is received. 51,000 common shares were sold by an underwriter for $53 per share. The underwriter charged Bl a 5% commission on the sale. ENC Sept. 23 Nov. 28 Dec. 31 Dec. 31 Bl issued a combination of 2,040 common and 1,020 preferred shares to a new shareholder for a total price of $204,000. BI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shar was used to estimate the value of the common share portion of the transaction. D BI wanted to recognize the efforts of a key employee and offered him the opportunity to purchase 510 common shares for $53, to be paid by December 31, 2024. The employee accepted the offer and signed a note payable to BIT the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued immediately. Of the 7 subscriptions issued on February 20, five subscriptions were paid in full and two subscribers defaulted. According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that had been paid and no cash would be refunded. BI declared a dividend of $204,000 for 2023. Net income for the year was $816,000. (a) Date Account Titles and Explanation Debit Credit Jan. 1 Jan. 15 No Entry > > Feb. 20 No Entry 7:34 ENG