In 20X4, 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:
• $420,000 will be paid in in order to acquire 28,000 shares
• 5% of the total contract is due immediately, the remaining balance will be due in 3 instalments as follows:
• 30 June 20X4: 30%
• 31 December 20X4: 30%
• 30 June 20X5: 35%
• No shares will be issued until all money has been paid by J Trax.

Required:
1. Journalize the share subscription agreement in 20X4 and 20X5 assuming that J Trax makes all payments on schedule and the shares are issued.
2. Journalize the share subscription agreement in 20X4 assuming that J Trax only makes the initial deposit and 30 June 20X4 payment and then cancels the agreement. Assume no shares are issued.
3. Journalize the share subscription agreement in 20X4 assuming that J Trax makes all the 20X4 payments, and then L Concept issues an equivalent number of shares.
4. Calculate the balance of the equity accounts for each scenario.

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Balance 31 December Common shares (no par value, unlimited authorized, 180,000 issued and outstanding) Retained earnings 20X3 $2,160,050 $ 863,207