In $20$X$4,$ L Concept entered into an agreement with J Trax whereby J Trax agreed to purchase common shares from L Concept. Details of the transaction are as follows:

$$419,900$ will be paid in in order to acquire $28,110$ shares

$5\%$ of the total contract is due immediately, the remaining balance will be due in $3$ instalments as follows:

$30$ June $20$X$4$: $30\%$

$31$ December $20$X$4$: $30\%$

$30$ June $20$X$5$: $35\%$

No shares will be issued until all money has been paid by J Trax.

Balance $31$ December $20$X$3$

Common shares $($no$-$par value, unlimited authorized, $181,100$ issued and outstanding$)$ $$2,161,150$

Retained earnings $$868,707$

Required:

$1.$ Journalize the share subscription agreement in $20$X$4$ and $20$X$5$ assuming that J Trax makes all payments on schedule and the shares are issued. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$2.$ Journalize the share subscription agreement in $20$X$4$ assuming that J Trax only makes the initial deposit and $30$ June $20$X$4$ payment and then cancels the agreement. Assume no shares are issued. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$3.$ Journalize the share subscription agreement in $20$X$4$ assuming that J Trax makes all the $20$X$4$ payments, and then L Concept issues an equivalent number of shares. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$4.$ Calculate the balance of the equity accounts for each scenario.

In $20$X$4,$ L Concept entered into an agreement with J Trax whereby J Trax agreed to purchase common shares from $L$ Concept. Details of the transaction are as follows:

$$419,700$ will be paid in in order to acquire $28,130$ shares

$5\%$ of the total contract is due immediately, the remaining balance will be due in $3$ instalments as follows:

$30$ June $20\backslash$times $4$:$30\%$

$31$ December $20$X$4$: $30\%$

$30$ June $20\backslash$times $5$:$35\%$

No shares will be issued until all money has been paid by J ThSx$.$Required:

Journalize the share subscription agreement in $204$ and $205$ assuming that $J$ Trax makes all payments on schedule and the shares are issued. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

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