During its first year of operations, Eastern Data Links Corporation entered into the following transactions...

60.1K

Verified Solution

Question

Accounting

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.

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.

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.

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member