Santa Toys Limited is a medium sized corporation that just went public and is in the business of making specialty toys. Or the 3,000,000 common shares outstanding. 1.800.000 are owned by Kris Kringle'. Over the last ten years Santa Toys has grown significantly and would like to get into the on-line ordering and shipping business. As a result, they are looking to investis trucking line that would fit their delivery needs. They think they would like to start with the purchase of about ten trucks and a shipping warehouse. The controller of Santa Toys recently found a trucking company that went bankrupt, and they also have a warehouse, which it to far from their current operation To make an offer, Santa Toys is looking for outside investments that would raise the capital Deeded to purchase the trucks and building. The controller of Santa Toys would like to bonds, the rest might have to be taken out vian loan or equity. The purchase price for the trucks and building is $2,500,000 with the building accounting for 80% of this purchase price. There will be some key safety items to be installed on the trucks before they can be used and this amounts to $20,000. The controller figures the whole research and work that he has had to do so per this purchase probably amounted to a week of his time or $10,000 The building has an expected life of 25 years and the trucks 15 years Tomise capital Santa Toys will issue a total of $600,000, in $1,000, 35., 10-year bonds The bonds payammual interest on January 1 of each and would be sold for 98. "We will and some help on how to record the bond on our books as well as the interest and any bondo discount amortization. "Kris said. To assist Kris and the controller in understanding me the bonds are sold on January 1" and record the sale of the boods and the December 31 yearend journal entry. He also wants to know what 98 means Issuing the bonds won't be enough to finance the purchase, so Santa Toys will have to take out a bank loan or issue common shares. The controller sure which one is better and hawd you to explain the differences between the two and what some of the advantages and des are Assuming Santa Toys take out a loan at 3% interest over 15 years, Kris would like you to prepare the journal entry for the purchase of the building and the used trockt He would also like you prepare the journal entry for the year end recording of amorturation and interest social on the loan. Assume the fint loan payment doesn't happen for two years and that interest is paid to the bank on January 2 of each year. Kris is also wondering about how dividends work in the financial statements What are they really?" He goes further by saying "Say I declare dividends of $50.000 and I have income for the year of $230,000 and my opening retained earnings was $123,000. What does that de to my yearendures Fot one bonus merk name ane tey from the land of Muft to from the movie fuo de Redond Reindeer Page 2 of Aa Santa Toys enters its 11 millennium of business, it is wondering what the best way to track all the toy inventory Currently the Elves (employees) do amamlinventory cover January after busy cion and then adjust inventory. Krisis finding it hard to track yg now with the ide wanting so much. He is wondering what your thoughts are on how to con for his inventory on an ongoing basis. He wants you to be specific to his company - genere responses are not going to be nice! You, CPA are the recently hired analyst for Santa Toys As your fint task, Kris has led you to prepare a report that responds to the questions he and his controller have. Required: Prepare ALL the information asked by Kris REMEMBER THAT YOU ARE ASSUMING ALL THESE INITIAL TRANSACTIONS TAKE PLACE JANUARY 1or 2021 WITH A YEAREND OF DECEMBER 31,2021. THE FIRST INTEREST PAYMENT WILL TAKE PLACE JANUARY 2,2022. GO THROUGH KACHE REQUIRED STEP BY STEP Santa Toys Limited is a medium sized corporation that just went public and is in the business of making specialty toys. Or the 3,000,000 common shares outstanding. 1.800.000 are owned by Kris Kringle'. Over the last ten years Santa Toys has grown significantly and would like to get into the on-line ordering and shipping business. As a result, they are looking to investis trucking line that would fit their delivery needs. They think they would like to start with the purchase of about ten trucks and a shipping warehouse. The controller of Santa Toys recently found a trucking company that went bankrupt, and they also have a warehouse, which it to far from their current operation To make an offer, Santa Toys is looking for outside investments that would raise the capital Deeded to purchase the trucks and building. The controller of Santa Toys would like to bonds, the rest might have to be taken out vian loan or equity. The purchase price for the trucks and building is $2,500,000 with the building accounting for 80% of this purchase price. There will be some key safety items to be installed on the trucks before they can be used and this amounts to $20,000. The controller figures the whole research and work that he has had to do so per this purchase probably amounted to a week of his time or $10,000 The building has an expected life of 25 years and the trucks 15 years Tomise capital Santa Toys will issue a total of $600,000, in $1,000, 35., 10-year bonds The bonds payammual interest on January 1 of each and would be sold for 98. "We will and some help on how to record the bond on our books as well as the interest and any bondo discount amortization. "Kris said. To assist Kris and the controller in understanding me the bonds are sold on January 1" and record the sale of the boods and the December 31 yearend journal entry. He also wants to know what 98 means Issuing the bonds won't be enough to finance the purchase, so Santa Toys will have to take out a bank loan or issue common shares. The controller sure which one is better and hawd you to explain the differences between the two and what some of the advantages and des are Assuming Santa Toys take out a loan at 3% interest over 15 years, Kris would like you to prepare the journal entry for the purchase of the building and the used trockt He would also like you prepare the journal entry for the year end recording of amorturation and interest social on the loan. Assume the fint loan payment doesn't happen for two years and that interest is paid to the bank on January 2 of each year. Kris is also wondering about how dividends work in the financial statements What are they really?" He goes further by saying "Say I declare dividends of $50.000 and I have income for the year of $230,000 and my opening retained earnings was $123,000. What does that de to my yearendures Fot one bonus merk name ane tey from the land of Muft to from the movie fuo de Redond Reindeer Page 2 of Aa Santa Toys enters its 11 millennium of business, it is wondering what the best way to track all the toy inventory Currently the Elves (employees) do amamlinventory cover January after busy cion and then adjust inventory. Krisis finding it hard to track yg now with the ide wanting so much. He is wondering what your thoughts are on how to con for his inventory on an ongoing basis. He wants you to be specific to his company - genere responses are not going to be nice! You, CPA are the recently hired analyst for Santa Toys As your fint task, Kris has led you to prepare a report that responds to the questions he and his controller have. Required: Prepare ALL the information asked by Kris REMEMBER THAT YOU ARE ASSUMING ALL THESE INITIAL TRANSACTIONS TAKE PLACE JANUARY 1or 2021 WITH A YEAREND OF DECEMBER 31,2021. THE FIRST INTEREST PAYMENT WILL TAKE PLACE JANUARY 2,2022. GO THROUGH KACHE REQUIRED STEP BY STEP