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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 1 million preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $9 per share. February 13 Issued 46,000 common shares to attorneys in exchange for legal services. February 13 Sold 86,000 of its common shares and 4,000 preferred shares for a total of $990,000. November 15 Issued 375,000 of its common shares in exchange for equipment for which the cash price was known to be $3,808,000. 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 fleld. Enter your answers In whole dollars and not in millions. View transaction list View journal entry worksheet No 1 Date February 12 Cash General Journal Debit Credit 27,000,000 Common stock Paid-in capital - excess of par, common 3,000,000 24,000,000 2 February 13 Legal expenses 414,000 Common stock Paid-in capital - excess of par, preferred 46,000 368,000 3 February 13 Cash Common stock Paid-in capital - excess of par, common Preferred stock Paid-in capital excess of par, preferred 4 November 15 Property, plant, and equipment Common stock Paid-in capital - excess of par, common 990,000 86,000 688,000 200,000 3,808,000 375,000 3,433,000

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 1 million preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $9 per share. February 13 Issued 46,000 common shares to attorneys in exchange for legal services. February 13 Sold 86,000 of its common shares and 4,000 preferred shares for a total of $990,000. November 15 Issued 375,000 of its common shares in exchange for equipment for which the cash price was known to be $3,808,000. 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 fleld. Enter your answers In whole dollars and not in millions. View transaction list View journal entry worksheet No 1 Date February 12 Cash General Journal Debit Credit 27,000,000 Common stock Paid-in capital - excess of par, common 3,000,000 24,000,000 2 February 13 Legal expenses 414,000 Common stock Paid-in capital - excess of par, preferred 46,000 368,000 3 February 13 Cash Common stock Paid-in capital - excess of par, common Preferred stock Paid-in capital excess of par, preferred 4 November 15 Property, plant, and equipment Common stock Paid-in capital - excess of par, common 990,000 86,000 688,000 200,000 3,808,000 375,000 3,433,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par...
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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 1 million preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $9 per share. February 13 Issued 46,000 common shares to attorneys in exchange for legal services. February 13 Sold 86,000 of its common shares and 4,000 preferred shares for a total of $990,000. November 15 Issued 375,000 of its common shares in exchange for equipment for which the cash price was known to be $3,808,000. 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 fleld. Enter your answers In whole dollars and not in millions. View transaction list View journal entry worksheet No 1 Date February 12 Cash General Journal Debit Credit 27,000,000 Common stock Paid-in capital - excess of par, common 3,000,000 24,000,000 2 February 13 Legal expenses 414,000 Common stock Paid-in capital - excess of par, preferred 46,000 368,000 3 February 13 Cash Common stock Paid-in capital - excess of par, common Preferred stock Paid-in capital excess of par, preferred 4 November 15 Property, plant, and equipment Common stock Paid-in capital - excess of par, common 990,000 86,000 688,000 200,000 3,808,000 375,000 3,433,000
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 7 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. February 12 Sold 3 million common shares, for $9 per share. February 13 Issued 46,000 common shares to attorneys in exchange for legal services. February 13 Sold 86,000 of its common shares and 4,000 preferred shares for a total of $990,000. November 15 Issued 375,000 of its common shares in exchange for equipment for which the cash price was known to be $3,808,000. 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 fleld. Enter your answers In whole dollars and not in millions. View transaction list View journal entry worksheet No 1 Date February 12 Cash General Journal Debit Credit 27,000,000 Common stock Paid-in capital - excess of par, common 3,000,000 24,000,000 2 February 13 Legal expenses 414,000 Common stock Paid-in capital - excess of par, preferred 46,000 368,000 3 February 13 Cash Common stock Paid-in capital - excess of par, common Preferred stock Paid-in capital excess of par, preferred 4 November 15 Property, plant, and equipment Common stock Paid-in capital - excess of par, common 990,000 86,000 688,000 200,000 3,808,000 375,000 3,433,000
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