transaction

Hazul 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 expanding the sales c Hollister Electric Inc. Balance Sheet As at December 31, 2020 Assets Liabilities Cash $30,000 Accounts Payable Accounts Receivable 15,800 Unearned Revenue Prepaid Insurance 4,200 Bank Loan Inventory 78,500 Total Liabilities Property, Plant & Equipment 220,000 Shareholders' Equity Accumulated Depreciation -30,000 Common Shares - 100,000 issued Retained Earnings Total Shareholders Equity Total Assets $318,500 Liabilities & Owner's Equity 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 sit on the board Transactions during 2021 a) On January 1, Holister purchased a strategic investment of 13,000 shares in Gregor Inc. for $12 per share. This represents 35% of Gregor Inc. common shares. On December 31, Gregor Inc. declares and pays a $68,000 dividend and reports a net income of $410,000. Holister will use the equity method to record this investment