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 10 million common shar preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $11 per share. February 13 Issued 49,000 common shares to attorneys in exchange for legal services. February 13 Sold 73,000 of preferred shares for a total of $1,005,000. November 15 Issued 390,000 of its common shares in exchange for equipment for which the cash price was known to be $3,868,000. Required: Prepare the appropriate transaction. Note: If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.
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 10 million common shar preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $11 per share. February 13 Issued 49,000 common shares to attorneys in exchange for legal services. February 13 Sold 73,000 of preferred shares for a total of $1,005,000. November 15 Issued 390,000 of its common shares in exchange for equipment for which the cash price was known to be $3,868,000. Required: Prepare the appropriate transaction. Note: If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am.108.
Transcribed Image Text: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 10 million common shares, $1 par per share, and 1 million
preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $11 per share. February 13 Issued 49,000 common shares to attorneys in exchange for legal services. February 13 Sold 73,000 of its common shares and 3,000
preferred shares for a total of $1,005,000. November 15 Issued 390,000 of its common shares in exchange for equipment for which the cash price was known to be $3,868,000. Required: Prepare the appropriate journal entries to record each
transaction. Note: If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.
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