Corvallis Canoe Company is a service company that rents canoes and kayaks for use on local lakes and rivers. The company was started by Lucy and Ricky, who met in college while suffering through accounting. Because they both love the outdoors, they started a business that combined their love of outdoor activities with their business expertise. Thus, Corvallis Canoe Company began operations on November 1, 2018. After the first two months in operation, Corvallis Canoe Company had a decent net income of $4,970, and they could afford to hire you as their accountant. Pleased with the growth of their company, Lucy and Ricky decided to invest their temporary excess cash in a brokerage account. The company had the following securities transactions in 2019: Jul. 1Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Corvallis Canoe does not have significant influence over Adobe. 7Purchased 35% of the stock of Bison Backpacks consisting of 43,750 shares of stock (out of a total of 125,000 shares) for $5 per share. Corvallis Canoe does have significant influence over Bison. 10Purchased a bond from Camelot Canoes with a face value of $80,000, paying semiannual interest on June 30 and December 31. Corvallis Canoe intends to hold the bond to maturity.Sep. 30Received dividends of $0.15 per share from Adobe.Nov. 1Received dividends of $0.30 per share from Bison.Dec. 31Received an interest payment of $3,200 from Camelot Canoes. 31Bison Backpacks reported net income of $30,000 for the year. 31Adjusted the Adobe stock for a market value of $2.98 per share. The effect on Corvallis Canoe Company’s net income for each of the three investments is as follows:Calculations: Cost of investments: Total cost=Number of shares×Price per share Adobe=8,000 shares×$3 per share=$ 24,000Bison=43,750 shares×$5 per share=218,750 Cash dividends: Total dividends=Number of shares×Dividend per share Adobe=8,000 shares×$0.15 per share=$ 1,200Bison=43,750 shares×$0.30 per share=13,125 Share of net income: Revenue from investment=Reportednet income×Percent ownership × Number of Months Held 12Bison=$30,000×35% × 6/12 =$5,250 Unrealized holding loss: Unrealized holding loss=Total fair value−Total costAdobe=(8,000 shares × $2.98 per share)−$24,000 =$23,840−$24,000 =$160 InvestmentAccountEffect on IncomeAdobeDividend Revenue$ 1,200 Unrealized Holding Loss—Equity Investment(160) $ 1,040Increase BisonRevenue from Investments $ 5,250Increase CamelotInterest Revenue$ 3,200Increase Lucy and Ricky are continuing their analysis of the company’s position and believe they will need to borrow $15,000 to expand operations. They consult Rivers Credit Union and secure a 6%, one-year note on September 1, 2019, with interest due at maturity.Corvallis Canoe Company is considering raising even more capital for further expansion. Lucy and Ricky want to expand into guided trips on the Willamette River. Additionally, they want to add another building on their land to offer more services for local customers.DateInterestExpenseJun. 30$ 8,002Dec. 318,002Dec. 3136,000Totals$ 52,004Corvallis Canoe Company plans to raise the capital needed for this expansion by issuing $210,000 of 7.5%, six-year bonds on January 2, 2019. The bonds pay interest semiannually on June 30 and December 31. The company issued the bonds at a discount and received $208,476.The company also issued a mortgage payable for $450,000 on January 2, 2019. The proceeds from the mortgage will construct the new building. The mortgage requires annual payments of $45,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 8%. After looking into debt financing through notes, mortgage, and bonds payable, Corvallis Canoe Company decides to raise additional capital for the planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2018, was $136,000 and included 136,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par—Common.) Corvallis Canoe Company had the following transactions in 2019:Jan. 1Issued 50,000 shares of $1 par value common stock for a total of $200,000.10Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with a market value of $67,000.Dec. 15Declared total cash dividends of $15,000.20Declared an 8% common stock dividend when the market value of the stock was $4.50 per share.31Paid the cash dividends.31Distributed the stock dividend. RequirementsUpdate the stockholders’ equity section of the balance sheet as of December 31, 2019 with the additional information given in the transactions provided just above. There was no preferred stock issued prior to the 2019 transactions.I need question 3 please

Assuming that you only need the stockholders' equity section as stated in the requirement Balance…

After looking into debt financing through notes, mortgage, and bonds payable, Corvallis Canoe Company decides to raise additional capital for the planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2018, was $136,000 and included 136,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par—Common.) Corvallis Canoe Company had the following transactions in 2019: Jan. 1 Issued 50,000 shares of $1 par value common stock for a total of $200,000. 10 Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with a market value of $67,000. Dec. 15 Declared total cash dividends of $15,000. 20 Declared an 8% common stock dividend when the market value of the stock was $4.50 per share. 31 Paid the cash dividends. 31 Distributed the stock dividend. Requirements Update the stockholders’ equity section of the balance sheet as of December 31, 2019 with the additional information given in the transactions provided just above. There was no preferred stock issued prior to the 2019 transactions. I need question 3 please

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Corvallis Canoe Company is a service company that rents canoes and kayaks for use on local lakes and rivers. The company was started by Lucy and Ricky, who met in college while suffering through accounting. Because they both love the outdoors, they started a business that combined their love of outdoor activities with their business expertise. Thus, Corvallis Canoe Company began operations on November 1, 2018. After the first two months in operation, Corvallis Canoe Company had a decent net income of $4,970, and they could afford to hire you as their accountant. Pleased with the growth of their company, Lucy and Ricky decided to invest their temporary excess cash in a brokerage account. The company had the following securities transactions in 2019:

Jul. 1	Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Corvallis Canoe does not have significant influence over Adobe.
7	Purchased 35% of the stock of Bison Backpacks consisting of 43,750 shares of stock (out of a total of 125,000 shares) for $5 per share. Corvallis Canoe does have significant influence over Bison.
10	Purchased a bond from Camelot Canoes with a face value of $80,000, paying semiannual interest on June 30 and December 31. Corvallis Canoe intends to hold the bond to maturity.
Sep. 30	Received dividends of $0.15 per share from Adobe.
Nov. 1	Received dividends of $0.30 per share from Bison.
Dec. 31	Received an interest payment of $3,200 from Camelot Canoes.
31	Bison Backpacks reported net income of $30,000 for the year.
31	Adjusted the Adobe stock for a market value of $2.98 per share.

The effect on Corvallis Canoe Company’s net income for each of the three investments is as follows:

Calculations:

Cost of investments:

Total cost	=	Number of shares	×	Price per share
Adobe	=	8,000 shares	×	$3 per share	=	$ 24,000
Bison	=	43,750 shares	×	$5 per share	=	218,750

Cash dividends:

Total dividends	=	Number of shares	×	Dividend per share
Adobe	=	8,000 shares	×	$0.15 per share	=	$ 1,200
Bison	=	43,750 shares	×	$0.30 per share	=	13,125

Share of net income:

Revenue from investment

Reported

net income

Percent ownership × Number of Months Held

Bison

$30,000

35% × 6/12

$5,250

Unrealized holding loss:

Unrealized holding loss	=	Total fair value	−	Total cost
Adobe	=	(8,000 shares × $2.98 per share)	−	$24,000
	=	$23,840	−	$24,000
	=	$160

Investment	Account	Effect on Income
Adobe	Dividend Revenue	$ 1,200
	Unrealized Holding Loss—Equity Investment	(160)
		$ 1,040	Increase

Bison	Revenue from Investments	$ 5,250	Increase

Camelot	Interest Revenue	$ 3,200	Increase

Lucy and Ricky are continuing their analysis of the company’s position and believe they will need to borrow $15,000 to expand operations. They consult Rivers Credit Union and secure a 6%, one-year note on September 1, 2019, with interest due at maturity.

Corvallis Canoe Company is considering raising even more capital for further expansion. Lucy and Ricky want to expand into guided trips on the Willamette River. Additionally, they want to add another building on their land to offer more services for local customers.

Date	Interest Expense
Jun. 30	$ 8,002
Dec. 31	8,002
Dec. 31	36,000
Totals	$ 52,004

Corvallis Canoe Company plans to raise the capital needed for this expansion by issuing $210,000 of 7.5%, six-year bonds on January 2, 2019. The bonds pay interest semiannually on June 30 and December 31. The company issued the bonds at a discount and received $208,476.

The company also issued a mortgage payable for $450,000 on January 2, 2019. The proceeds from the mortgage will construct the new building. The mortgage requires annual payments of $45,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 8%.

After looking into debt financing through notes, mortgage, and bonds payable, Corvallis Canoe Company decides to raise additional capital for the planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2018, was $136,000 and included 136,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par—Common.) Corvallis Canoe Company had the following transactions in 2019:

Jan. 1	Issued 50,000 shares of $1 par value common stock for a total of $200,000.
10	Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with a market value of $67,000.
Dec. 15	Declared total cash dividends of $15,000.
20	Declared an 8% common stock dividend when the market value of the stock was $4.50 per share.
31	Paid the cash dividends.
31	Distributed the stock dividend.

Requirements

Update the stockholders’ equity section of the balance sheet as of December 31, 2019 with the additional information given in the transactions provided just above. There was no preferred stock issued prior to the 2019 transactions.

I need question 3 please

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