Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year: a. To record authorization of shares by board of directors (memorandum). b. Issued 250,000 shares at $60; collected cash in full and issued the shares. Share issue costs amounted to $72,000. Treat this amount as a reduction of the common share account. c. Received subscriptions for 125,000 shares at $70 per share; collected 60% of the subscription price. The shares will not be issued until collection of cash in full. d. Issued 700 shares to a lawyer in payment for legal fees related to trademark registration. The lawyer estimates that the legal services provided would have been worth $49,000. e. Issued 50,000 shares and assumed an $350,000 mortgage in total payment for a building with a fair value of $700,000. f. Collected balance on subscriptions receivable in (c). Required: 1. Journalize the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in t account field.) View transaction list Journal entry worksheet 1 2 Note: Enter debits before credits. Transaction a Record the authorization of shares 3 4 5 General Journal No journal entry required 6 7 8 Debit Credit < 1 2 Record the issue of shares. Note: Enter debits before credits. Transaction b(1) 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 3 Record share issue costs. Note: Enter debits before credits. Transaction b(2) 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet 1 2 3 Record receipt of subscription. Transaction Note: Enter debits before credits. 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet 1 3 Note: Enter debits before credits. Transaction d 4 Record payment of legal fee by issuing shares. 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 2 Transaction e 3 Note: Enter debits before credits. 4 5 Record the acquistion of building by issue of shares and acceptance of mortgage. 6 General Journal 7 8 Debit Credit Journal entry worksheet 1 2 3 Transaction f(1) Note: Enter debits before credits. 4 Record collection of balance subscription. 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 2 3 Transaction f(2) Note: Enter debits before credits. 4 Record the entry for issuance of shares. 5 General Journal 6 7 8 Debit Credit > Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year: a. To record authorization of shares by board of directors (memorandum). b. Issued 250,000 shares at $60; collected cash in full and issued the shares. Share issue costs amounted to $72,000. Treat this amount as a reduction of the common share account. c. Received subscriptions for 125,000 shares at $70 per share; collected 60% of the subscription price. The shares will not be issued until collection of cash in full. d. Issued 700 shares to a lawyer in payment for legal fees related to trademark registration. The lawyer estimates that the legal services provided would have been worth $49,000. e. Issued 50,000 shares and assumed an $350,000 mortgage in total payment for a building with a fair value of $700,000. f. Collected balance on subscriptions receivable in (c). Required: 1. Journalize the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in t account field.) View transaction list Journal entry worksheet 1 2 Note: Enter debits before credits. Transaction a Record the authorization of shares 3 4 5 General Journal No journal entry required 6 7 8 Debit Credit < 1 2 Record the issue of shares. Note: Enter debits before credits. Transaction b(1) 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 3 Record share issue costs. Note: Enter debits before credits. Transaction b(2) 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet 1 2 3 Record receipt of subscription. Transaction Note: Enter debits before credits. 4 5 General Journal 6 7 8 Debit Credit Journal entry worksheet 1 3 Note: Enter debits before credits. Transaction d 4 Record payment of legal fee by issuing shares. 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 2 Transaction e 3 Note: Enter debits before credits. 4 5 Record the acquistion of building by issue of shares and acceptance of mortgage. 6 General Journal 7 8 Debit Credit Journal entry worksheet 1 2 3 Transaction f(1) Note: Enter debits before credits. 4 Record collection of balance subscription. 5 General Journal 6 7 8 Debit Credit Journal entry worksheet < 1 2 3 Transaction f(2) Note: Enter debits before credits. 4 Record the entry for issuance of shares. 5 General Journal 6 7 8 Debit Credit >
Expert Answer:
Answer rating: 100% (QA)
Journalizing the transactions a Memorandum entry to record the authorization of shares by the board ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
The following transactions took place at Swensons Wildlife Resort during May. Swensons Wildlife Resort must charge 8 percent sales tax on all sales: DATE TRANSACTIONS 2016 May 1 Sold merchandise on...
-
The following transactions took place at Hanson's Wildlife Resort during May. Hanson's Wildlife Resort must charge 8 percent sales tax on all sales: DATE TRANSACTIONS 2013 May 1 Sold merchandise on...
-
The following transactions took place at Outdoor Adventures during May. Enter these transactions in a sales journal like the one shown in Figure 7.2. Use 18 as the page number for the sales journal....
-
Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,000,000 and leased...
-
Florida, like several other states, has passed a law that prohibits price gouging immediately before, during, or after the declaration of a state of emergency. Price gouging is defined as . . ....
-
Lenox Manufacturing Co. produces and sells specialized equipment used in the petroleum industry. The company is organized into three separate operating branches: Division A, which manufactures and...
-
5. Question: Mark Milbank built custom furniture in Port Chester, New York. His business was unsuccessful, and he repeatedly borrowed money from his wife and her father. He promised that the loans...
-
(Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2010, Divac Company issued $300,000 of 9%, 10-year bonds at par. Interest is payable quarterly on...
-
. Exam 2 09 uestion 4 of 7 < / 10 ew Policies urrent Attempt in Progress On October 1, the Oriole Bicycle Store had an inventory of 28 electric bicycles at a cost of $157 each. During the month o...
-
"Part 1: The Performance Lawn Equipment database contains data needed to develop a pro forma income statement. Dealers selling PLE products all receive 18% of sales revenue for their part of doing...
-
After a subapplication has been approved, an Applicant can include it in a larger application and submit it to FEMA or _____. A. submit the subapplication directly to FEMA B. submit the...
-
How do multifunctional teams, characterized by their diverse amalgamation of specialized expertise and skill sets, navigate the complexities inherent in their collaborative endeavors, particularly...
-
Tamarisk, Inc. reported the following in its 2025 and 2024 income statements. 2025 2024 Net sales $158,000 $128,000 Cost of goods sold 82,160 66,560 Operating expenses 31,600 19,200 Income tax...
-
How has the firm Goodyear's corporate-level strategy evolved over time? Explain
-
MUNOZ COMPANY Balance sheet Assets Cash $ 14,800 Marketable securities 7,860 Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders'...
-
How can organizations proactively address the ethical and moral dilemmas inherent in the pursuit of organizational development initiatives, balancing the imperative for growth and profitability with...
-
Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. Themarket discount rate for this bond is only 7%. What is the current price of this bond? Progressive...
-
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
-
On March 1, 2014, Wilma Limited signed a contract to build a factory for Slate Construction Manufacturing Inc. for a total contract price of $9.4 million. The building was completed by October 31,...
-
Theriault Inc. shows a balance of $420,289 in the Accounts Receivable account on December 31, 2014. The balance consists of the following: Instructions Show how the information above should be...
-
Use the information presented in BE5-8 for Cellin Limited to prepare the non-current liabilities section of the statement of financial position in accordance with (a) IFRS and (b) ASPE.
-
Your brother works for a company that makes components for DVD players. The company has started to outsource some of its component assembly work to a country where employees wages are much lower than...
-
If your knowledge about personal fi nance is limited, being Web and tech savvy will help you learn more. Finance is a frequent topic on the news and is easy to research.
-
What are three characteristics of successful people? Describe how each characteristic might be an asset at school or work.
Study smarter with the SolutionInn App