Transaction B

in preferred shares. Hollister Electric Inc. issued 150 7 151 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 152 Hollister Electric Inc. 153 Balance Sheet 154 As at December 31, 2020 155 Assets Liabilities 156 Cash $30,000 Accounts Payable 157 Accounts Receivable $14,700 15,800 Unearned Revenue 158 6,600 Prepaid Insurance 4,200 Bank Loan 31,000 159 Inventory 78,500 Total Liabilities 52,300 Property, Plant & Equipment 220,000 Shareholders' Equity 167 Accumulated Depreciation -30.000 Common Shares - 100,000 issued 100,000 162 Retained Earnings 166 200 Total Shareholders Equity 266,200 Total Assets $318,500 Liabilities & Owner's Equity $318,500 65 66 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