Holister Electric Inc.
Balance Sheet
As at December 31, 2020
Assets					Liabilities
Cash			$24,660		Accounts Payable			$15,400
Accounts Receivable			16,700		Unearned Revenue			10,000
Prepaid Insurance			7,200		Bank Loan			25,000
Inventory			81,400		Total Liabilities			50,400
Property, Plant & Equipment			215,000		Shareholders' Equity
Accumulated Depreciation			-29,000		Common Shares - 95,000 issued			95,000
					Retained Earnings			170,560
					Total Shareholder's Equity			265,560
Total Assets			$315,960		Liabilities & Owner's Equity			$315,960
At 2020, Razul has authorized 160,000 common shares and 12,000 preferred shares. The preferred shares will be cumulative and pay $6 dividends. The 95,000 shares issued were issued to Razul. He will maintain control of the company and sit on the board of directors.

USING THE FOLLOWING BALANCE SHEET ABOVE, PLEASE JOURNALIZE THE BELOW JOURNAL ENTRIES --

A-G

a) On January 1, Holister purchased a strategic investment of 17,500 shares in Gregor Inc. for $14 per share. This represents 32% of Gregor Inc. common shares. On December 31, Gregor Inc. declares and pays a $71,000 dividend and reports a net income of $380,000. Holister will use the equity method to record this investment.

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. Holister Electric Inc. issued 45,000 common shares for $112,500 cash and issued 9,000 preferred shares for $36,000 cash.

c) On March 1, Holister Electric Inc. issued and sold $195,000, 9 year bonds with an interest rate of 9%. The market rate at the time of issue was 10%. Any premium or discount on the bond is amortized using the effective interest rate method. Interest will be paid annually on February 28. The Present value of 1 and annuity of 1 of 10% for 6 periods are 0.4241 and 5.759, respectively. Use a 4 decimal factor for the bond calculation.

d) On April 1, the company has extra cash on hand and would like to invest it in short-term bonds issued by Gamma Ltd. The company bought 22, $1,200 short term (one-year) bonds at par on this date and intended to sell these bonds before maturity. The interest rate on the bond is 12%, payable annually at March 31. On December 31, 2021, each bond was trading in the market at $1,300. On January 1, 2022, all bonds were sold for $29,000.

e) On July 1, Holister purchased a $60,000, 8 year bond paying 8%. Interest is paid every 6 months on December 31 and June 30. The company plans to hold onto the bond until it matures.

f) On November 23, the company purchased 3,200 shares of Daenerys Inc. at $24 per share for the purpose of trading. The shares are less than 6% of the total shares of Daenerys Inc. and are a non-strategic investment. By December 31, the price per share had gone up to $26 per share.

g) During 2021, Holister Electric Inc. has performed well, so the board of directors decided to pay dividends. On November 30, 2021, the company declared cash dividends of $88,000, which will be paid out on December 15, 2021. Use the cash dividends method and close cash dividends at the end of the year.

THE ABOVE ARE TO BE JOUNALIZED IN A JOURNAL ENTRY USING THE BALANCE SHEET ABOVE