Transaction B

Razul took the proceeds from dissolving the partnership and purchased a corporation selling electrical parts used for large production companies. He employs several people, but is looking to expand his operations further. In addition to expa Hollister Electric Inc. Balance Sheet As at December 31, 2020 Assets Liabilities Cash $30,000 Accounts Payable $14,700 Accounts Receivable 15,800 Unearned Revenue 6,600 Prepaid Insurance 4,200 Bank Loan 31,000 Inventory 78,500 Total Liabilities 52,300 Property, Plant & Equipment 220,000 Shareholders' Equity Accumulated Depreciation -30 000 Common Shares - 100,000 issued 100,000 Retained Earnings 166,200 Total Shareholders Equity 266 200 Total Assets $318,500 Liabilities & Owner's Equity $318,500 At 2020, Razul has authorized 180,000 common shares and 15,000 preferred shares. The preferred shares will be cumulative and pay $6 dividends. The 100,000 shares issued were issued to Razul. He will maintain control of the company and Transactions during 2021 A176 b) On January 1, Razul has located a few private investors that wish to purchase shares in the new corporation. Some want common shares, while other are interested in preferred shares. Hollister Electric Inc. issued 35,000 common shares for $87,500 cash and issued 5,000 preferred shares for $20,000 cash