Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the...

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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 >

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Journalizing the transactions a Memorandum entry to record the authorization of shares by the board ... View the full answer