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Issuance of shares; noncash consideration 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 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. Sold 2 million common shares, for $9 per share. 12 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. Issued 380,000 of its common shares in exchange for equipment for which the cash 15 price was known to be $3,688,000.

Issuance of shares; noncash consideration 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 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. Sold 2 million common shares, for $9 per share. 12 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. Issued 380,000 of its common shares in exchange for equipment for which the cash 15 price was known to be $3,688,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Issuance of shares; noncash consideration 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 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. Sold 2 million common shares, for $9 per share. 12 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. Issued 380,000 of its common shares in exchange for equipment for which the cash 15 price was known to be $3,688,000.
Transcribed Image Text:Issuance of shares; noncash consideration 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 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Required: Prepare the appropriate journal entries to record each transaction. Feb. Sold 2 million common shares, for $9 per share. 12 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Nov. Issued 380,000 of its common shares in exchange for equipment for which the cash 15 price was known to be $3,688,000.
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