During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholder's 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. 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 it exchange for equipment for which the cash. price was known to be $3,688,000. Required:Prepare the appropriate journal entries to record each transaction.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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During its first year of operations,
Eastern Data Links Corporation
entered into the following
transactions relating to
shareholder's 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. 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 it exchange
for equipment for which the cash.
price was known to be
$3,688,000.
Required:Prepare the appropriate
journal entries to record each
transaction.
Transcribed Image Text:During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholder's 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. 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 it exchange for equipment for which the cash. price was known to be $3,688,000. Required:Prepare the appropriate journal entries to record each transaction.
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