Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year: a. To record authorization of shares by board of directors (memorandum). b. Issued 200,000 shares at $20; collected cash in full and issued the shares. Share issue costs amounted to $67,000. Treat this amount as a reduction of the common share account. c. Received subscriptions for 100,000 shares at $30 per share; collected 70% of the subscription price. The shares will not be issued until collection of cash in full. d. Issued 400 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 $12,000. e. Issued 40,000 shares and assumed an $120,000 mortgage in total payment for a building with a fair value of $240,000. f. Collected balance on subscriptions receivable in (c).
Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year: a. To record authorization of shares by board of directors (memorandum). b. Issued 200,000 shares at $20; collected cash in full and issued the shares. Share issue costs amounted to $67,000. Treat this amount as a reduction of the common share account. c. Received subscriptions for 100,000 shares at $30 per share; collected 70% of the subscription price. The shares will not be issued until collection of cash in full. d. Issued 400 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 $12,000. e. Issued 40,000 shares and assumed an $120,000 mortgage in total payment for a building with a fair value of $240,000. f. Collected balance on subscriptions receivable in (c).
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...
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![Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year:
a. To record authorization of shares by board of directors (memorandum).
b. Issued 200,000 shares at $20; collected cash in full and issued the shares. Share issue costs amounted to $67,000. Treat this
amount as a reduction of the common share account.
c. Received subscriptions for 100,000 shares at $30 per share; collected 70% of the subscription price. The shares will not be issued
until collection of cash in full.
d. Issued 400 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 $12,000.
e. Issued 40,000 shares and assumed an $120,000 mortgage in total payment for a building with a fair value of $240,000.
f. Collected balance on subscriptions receivable in (c).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bfc4283-5346-4d77-a552-d84c8875c324%2F9b08e26e-6a98-403e-b04f-856ab54a6dd5%2Fuvuz9tb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Holimont Ltd. (HL) has unlimited no-par common shares authorized. The following transactions took place in the first year:
a. To record authorization of shares by board of directors (memorandum).
b. Issued 200,000 shares at $20; collected cash in full and issued the shares. Share issue costs amounted to $67,000. Treat this
amount as a reduction of the common share account.
c. Received subscriptions for 100,000 shares at $30 per share; collected 70% of the subscription price. The shares will not be issued
until collection of cash in full.
d. Issued 400 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 $12,000.
e. Issued 40,000 shares and assumed an $120,000 mortgage in total payment for a building with a fair value of $240,000.
f. 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.)
View transaction list
1
Record the authorization of shares
2 Record the issue of shares.
3 Record share issue costs.
Record receipt of subscription.
5 Record payment of legal fee by issuing shares.
Credit
Record the acquistion of building by issue of shares and
acceptance of mortgage.
Record collection of balance subscription.
8
Record the entry for issuance of shares.
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bfc4283-5346-4d77-a552-d84c8875c324%2F9b08e26e-6a98-403e-b04f-856ab54a6dd5%2Fjpc0ic_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.)
View transaction list
1
Record the authorization of shares
2 Record the issue of shares.
3 Record share issue costs.
Record receipt of subscription.
5 Record payment of legal fee by issuing shares.
Credit
Record the acquistion of building by issue of shares and
acceptance of mortgage.
Record collection of balance subscription.
8
Record the entry for issuance of shares.
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
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