Moreland Holdings Inc

question 41

Essay

Moreland Holdings Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $ 3-cumulative preferred shares. At January 1, 2021, the balances in its share capital accounts were $ 45,000 in common shares representing 15,000 shares and $ 30,000 in preferred shares representing 1,000 shares. The company had a balance of $ 50,000 in contributed surplus from previous years' repurchase of common shares. The retained earnings balance on that date was $ 180,000 and accumulated other comprehensive income was $ 62,000. Profit for the year ending December 31, 2021 was $ 24,000 and other comprehensive income items for the year were $ 5,000. There were no dividends in arrears at January 1, 2021 and no dividends were declared during 2021.
During 2021, Moreland had the following share transactions:
Mar 1 Issued 4,000 common shares for $ 5 each.
Jun 30 Issued 500 preferred shares for $ 11 each.
Sep 1 Issued 60,000 common shares in exchange for land valued at $ 285,000.
Dec 1 Reacquired 50,000 common shares for $ 5.25 each.
Instructions
a) Journalize the share transactions.
b) Prepare the equity section of Moreland's balance sheet at December 31, 2021 and describe any additional disclosure required related to share capital.

Analyze the effects of material and anticipatory breaches on contractual obligations.

Discern between different standards (subjective, objective) for contract satisfaction and their legal implications.

Recognize the role of mutual agreement (accord and satisfaction, novation, mutual rescission) in modifying or discharging contracts.

Identify various types of legal and equitable damages and remedies available in contract law.

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Definitions:

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