Reference no: EM132616862

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

1. To record authorization of shares by board of directors (memorandum).
2. Issued 130,000 shares at $40; collected cash in full and issued the shares. Share issue costs amounted to $47,000. Treat this amount as a reduction of the common share account.
3. Received subscriptions for 65,000 shares at $50 per share; collected 70% of the subscription price. The shares will not be issued until collection of cash in full.
4. Issued 800 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 $40,000.
5. Issued 26,000 shares and assumed an $130,000 mortgage in total payment for a building with a fair value of $260,000.
6. Collected balance on subscriptions receivable in (c).

Required:

Problem a: Journalize the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1 Record the authorization of shares

2 Record the issue of shares.

3 Record share issue costs.

4 Record receipt of subscription.

5 Record payment of legal fee by issuing shares.

6 Record the acquistion of building by issue of shares and acceptance of mortgage.

7 Record collection of balance subscription