Exercise 18-5 (Algo) Issuance of shares; noncash consideration [LO18-4] 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 2 million preferred shares, $50 par per share. 1-February 12 Sold 4 million common shares, for $10 per share. 2-February 13 Issued 44,000 common shares to attorneys in exchange for legal services. 3-February 13 Sold 80,000 of its common shares and 3,000 preferred shares for a total of $980,000. 4-November 15 Issued 365,000 of its common shares in exchange for equipment for which the cash price was known to be $3,768,000. 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.
Exercise 18-5 (Algo) Issuance of shares; noncash consideration [LO18-4]
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 2 million
1-February 12 Sold 4 million common shares, for $10 per share.
2-February 13 Issued 44,000 common shares to attorneys in exchange for legal services.
3-February 13 Sold 80,000 of its common shares and 3,000 preferred shares for a total of $980,000.
4-November 15 Issued 365,000 of its common shares in exchange for equipment for which the cash price was known to be $3,768,000.
Required:
Prepare the appropriate journal entries to record each transaction.
Note: If no entry is required for a particular transaction, select "No
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