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ACCT444CD2Exhibits.docx

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ACCT444 - CD#2 – Exhibits

#1 – Letter from CFO

From: [email protected]

Sent: June 6, year 6 2:13 PM

To: [email protected]

Subject: Edgewater Industrial Estate

Controller,

We have agreed on the terms for the purchase of our office in Edgewater Industrial Estate with a closing date of August 31, year 6. The agreed purchase price of the property is $2,287,525.

Thank you,

CFO

P: +1.234.657.8910

[email protected]

#2 - Hiver Co. - Minutes of Special Meeting of August 28, year 6

Members Present:

A. Janues

L. Hiver

M. Hannen

Not Present:

D. Chen

Agenda Item:

Loans to Shareholders

This special meeting of the board of directors has been called for the purpose of approving a new loan to a shareholder.

Management routinely provided loans to shareholders when requested in prior periods. There is a current loan balance outstanding relating to a loan to M. Moore. The outstanding balance at December 31, year 6, will be $25,000. The loan will be repaid in full by July 31, year 7.

J. Hiver has made a request to management for a loan of $225,000. The monthly loan repayments will commence on January 1, year 8, over a period of 20 months. Repayments will be equal installments of $12,500. The loan will be interest-free.

MOTION: That the loan to J. Hiver be approved as circulated and distributed September 1, year 6.

ACTION: APPROVED by quorum

#3 – Hiver Co. - Year Ended December 31, year 6 – Comparative Unadjusted trial balance

o		Year 6	Year 5
Account Number	Account Description	Debit	Credit	Debit	Credit
1010	Bank account no. 001039673	5,136,000		5,735,000
1012	Bank account no. 001035821	25,400		31,250
1014	Bank account - deposit	1,200,000		2,100,000
1050	Bank account - payroll	12,635		21,760
1200	Account receivable	3,264,500		2,975,800
1205	Allowance for doubtful accounts		(456,250)		(82,000)
1300	Prepaid expenses	7,200		8,100
1401	Finished goods inventory	780,500		725,300
1405	WIP inventory	72,850		82,450
1408	Raw materials inventory	203,640		197,350
1600	Office equipment	175,000		175,000
1601	Accumulated depreciation - office equipment		(62,500)		(36,500)
1650	Furniture & fixtures	201,500		201,500
1651	Accumulated depreciation - furniture & fixtures		(153,150)		(112,000)
1700	Vehicles	-		36,500
1701	Accumulated depreciation - vehicles		-		(27,425)
1750	Buildings	2,287,525		-
1751	Accumulated depreciation - buildings		(23,800)		-
1800	Investments in equity securities	325,000		400,000
2200	Accounts payable		(963,500)		(864,200)
2300	Accrued expenses		(11,300)		(10,800)
2400	Income taxes payable		(6,200)		(6,450)
2600	Bank loan		(1,026,000)		(1,142,000)
2620	Loan to shareholder	250,000		25,000
3000	Common stock (par $.10 per share)		(15,000)		(10,000)
3100	Additional paid-in-capital		(110,000)		(100,000)
3500	Retained earnings		(10,323,325)		(2,257,600)
3550	Dividends paid	7,200,000		-
4000	Revenue		(22,665,275)		(19,452,500)
4010	Freight revenue		(63,200)		(58,470)
4110	Sales discounts	143,800		152,400
4111	Sales returns	72,400		78,350
4200	Bank interest income		(77,500)		(97,200)
4300	Gain on sale of motor vehicle		(8,925)		(4,200)
5050	Raw materials	9,058,140		8,090,720
5060	Payroll - manufacturing	1,436,000		1,413,700
5090	Freight expense	42,300		37,650
6500	Insurance expense	23,110		23,000
6800	Payroll - management	850,750		790,600
6805	Payroll - administrative	498,205		462,400
6806	Payroll processor fees	2,400		2,400
6900	Sundry expense	890		940
7050	Legal fees	23,000		21,500
7060	Auditing and accounting fees	32,500		29,800
7100	Business meals	5,200		5,130
7105	Travel expense	12,700		13,950
7115	Postage expense	670		590
7201	Utilities	82,860		100,650
7500	Repairs and maintenance	137,000		14,500
7600	Depreciation expense	77,950		75,400
7700	Bad debt expense	385,000		12,750
7800	Bank interest expense	35,910		38,460
8000	Income tax expense	1,903,390		181,445
		35,965,925	(35,965,925)	24,261,345	(24,261,345)