During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 7 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. Feb. 12 Sold 4 million common shares, for $8 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 6,500 preferred shares for a total of $1,040,000. Nov. 15 Issued 425,000 of its common shares in exchange for equipment for which the cash price was known to be $4,008,000. 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 shareholders’ equity. The articles of incorporation authorized the issue of 7 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. Feb. 12 Sold 4 million common shares, for $8 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 6,500 preferred shares for a total of $1,040,000. Nov. 15 Issued 425,000 of its common shares in exchange for equipment for which the cash price was known to be $4,008,000. 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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During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 7 million common shares, $1 par per share, and 3 million
| Feb. | 12 | Sold 4 million common shares, for $8 per share. | ||
| 13 | Issued 40,000 common shares to attorneys in exchange for legal services. | |||
| 13 | Sold 80,000 of its common shares and 6,500 preferred shares for a total of $1,040,000. | |||
| Nov. | 15 | Issued 425,000 of its common shares in exchange for equipment for which the cash price was known to be $4,008,000. |
Required:
Prepare the appropriate
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