Holimont Ltd (HL) has unlimited no par common shares authorized The following transactions took place in the first year To record authorization of shares by board of directors (memorandum) Issued 230,000 shares at $80 collected cash in full and issued the shares Share issue costs amounted to $50,000 Treat this amount as a reduction of the common share account Received subscriptions for 115,000 shares at $90 per share collected 70 of the subscription price The shares will not be issued until collection of cash in full Issued 600 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 $54,000 Issued 46,000 shares and assumed an $414,000 mortgage in total payment for a building with a fair value of $828,000 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 the first account field )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 21, 2024

Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year: To record authorization of shares by board

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

To record authorization of shares by board of directors (memorandum).
Issued 230,000 shares at $80; collected cash in full and issued the shares. Share issue costs amounted to $50,000. Treat this amount as a reduction of the common share account.
Received subscriptions for 115,000 shares at $90 per share; collected 70% of the subscription price. The shares will not be issued until collection of cash in full.
Issued 600 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 $54,000.
Issued 46,000 shares and assumed an $414,000 mortgage in total payment for a building with a fair value of $828,000.
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 the first account field.)