Flowers Inc. (FL) reported the following in shareholders' equity at the end of 20X6:
Common shares, no-par value; authorized, unlimited shares; issued,
450,000 shares $2,340,000
Retained earnings 3,070,000
$5,410,000
The company signed an agreement with Containers Ltd. (CL) in early 20X7, wherein CL agreed to purchase 309,600 common shares for $1,266,400. CL paid $36,400 on signing the contract, and agreed to pay $307,500 per year in each of the following four years. No shares were to be issued until all money was paid.
Required:
1. Journalize the share subscription agreement, and the Initial payment. Then, calculate the balances in all equity accounts, reflecting the entries. Subscriptions receivable is a contra account in equity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate and final answers to nearest dollar amount.)
View transaction list
Journal entry worksheet
Record the share subscription agreement and the initial payment.
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