Prepare journal entries to record the following transactions that occurred during the first 2 months of operations: (1) Jan 10 Sold 60,000 common shares for $6 per share cash (2) Jan 15 Exchanged 4,000 preferred shares for equipment with a fair market value of $40,000 (3) Feb 1 Exchanged 1,000 preferred shares for legal fees incurred during organization worth $7,500

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter11: Accounting For Transactions Using A General Journal
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Prepare journal entries to record the following transactions that occurred during the first 2 months of operations:
(1) Jan 10 Sold 60,000 common shares for $6 per share cash
(2) Jan 15 Exchanged 4,000 preferred shares for equipment with a fair market value of $40,000
(3) Feb 1 Exchanged 1,000 preferred shares for legal fees incurred during organization worth $7,500
Transcribed Image Text:Prepare journal entries to record the following transactions that occurred during the first 2 months of operations: (1) Jan 10 Sold 60,000 common shares for $6 per share cash (2) Jan 15 Exchanged 4,000 preferred shares for equipment with a fair market value of $40,000 (3) Feb 1 Exchanged 1,000 preferred shares for legal fees incurred during organization worth $7,500
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