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 9 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. February 12 Sold 4 million common shares, for $9 per share. February 13 Issued 37,000 common shares to attorneys in exchange for legal services. February 13 Sold 78,000 of its common shares and 5,000 preferred shares for a total of $1,025,000. November 15 Issued 410,000 of its common shares in exchange for equipment for which the cash price was known to be $3,948,000. 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 shareholders'
equity. The articles of incorporation authorized the issue of 9 million common shares, $1 par per share, and 3 million preferred shares,
$50 par per share.
February 12 Sold 4 million common shares, for $9 per share.
February 13 Issued 37,000 common shares to attorneys in exchange for legal services.
February 13 Sold 78,000 of its common shares and 5,000 preferred shares for a total of $1,025,000.
November 15 Issued 410,000 of its common shares in exchange for equipment for which the cash price was known to be $3,948,000.
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 shareholders' equity. The articles of incorporation authorized the issue of 9 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. February 12 Sold 4 million common shares, for $9 per share. February 13 Issued 37,000 common shares to attorneys in exchange for legal services. February 13 Sold 78,000 of its common shares and 5,000 preferred shares for a total of $1,025,000. November 15 Issued 410,000 of its common shares in exchange for equipment for which the cash price was known to be $3,948,000. Required: Prepare the appropriate journal entries to record each transaction.
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