During its first year of operations, Easten Data Links Corporation entered into the following transactions relatingto shareholders' equity. The articles of incorporation authorized the issue of 8 million common shares, S1 par pershare, and 1 million preferred shares, $50 par per share.E 18-5Issuance ofshares; noncashconsiderationRequired:• LO18-4Prepare the appropriate journal entries to record each transaction.Sold 2 million common shares, for $9 per share.Issued 40,0000 common shares to attorneys in exchange for legal services.Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000.Issued 380,000 of its common shares in exchange for equipment for which the cash price wasknown to be $3,688,000.Feb. 121313Nov. 15

Issuance of shares, non-cash consideration: Shares can be sold for cash or can be issued for…

During its first year of operations, Eastem Data Links Corporation entered into the following transactions relating to shareholders' equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. 12 Sold 2 million common shares, for $9 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.

During its first year of operations, Eastem Data Links Corporation entered into the following transactions relating to shareholders' equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. 12 Sold 2 million common shares, for $9 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am. 256.