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TASK 4. Caitlyn noticed that she had an ever-increasing cash balance and is aware that money sitting in an chequeing account not earning interest, is
TASK 4. Caitlyn noticed that she had an ever-increasing cash balance and is aware that money sitting in an chequeing account not earning interest, is not a smart decision. One of the shareholders of a Seed2U, a seed manufacturer approached her to sell their shares in December. This opportunity excited Caitlyn and she could vertically integrate and have a more secure supply stream. Also, oddly enough this was the first investment opportunity presented to her. After tough negotiations on January 27th, 2020, they agreed on 1,800 out of the 10,000 shares issued and outstanding and 2 out of the 7 seats on the Board of Directors for the price of $45 per share. As of the end of the year, the shares have a market value of $46 per share. Seed2U earned $218,000 in profit in 2020 and issued $5000 in dividends on December 31, 2020. As no entries related to this transaction have been recorded, please record all applicable entries
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