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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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