Question

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. Feb. 12 Sold 4 million common shares, for $9 per share. 13 Issued 37,888 common shares to attorneys in exchange for legal services. 13 Sold 78,ee0 of its common shares and 5,eee preferred shares for a total of $1,e25,e00. Nov. 15 Issued 410,eee of its conmon shares in exchange for equipment for which the cash price was known to be $3, 948, eee. Required: Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular tr epare the appropriate journal entries to record each transaction.(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.) View transaction list ournal entry worksheet Sold 4 million common shares, for $9 per share. Note: Enter debits before credits General Journal Debit February 12 Record entry Clear entry View general journal

Answer 1

Journal Date Accounts Debit Credit 2/12/2019 Cash $36,000,000 Common Stock Paid-In Capital in Excess of Par Value-Common Stock (Common Stock issued 4000000*9 S4,000,000 4000000 1 $32,000,000 4000000 8 2/13/2019 Legal Expenses S333,000 Common Stock Paid-In Capital in Excess of Par Value-Common Stock (Legal Expenses paid by issuing Common Stock) 37000*9 $ 37,000 37000*1 $ 296,000 37000*8 2/13/2019 Cash $ 1,025,000 Common Stock Paid-In Capital in Excess of Par Value-Common Stock Preferred Stock Paid-In Capital in Excess of Par Value-Preferred Stock (Common Stock and Preferred Stock issued $78,000 78000 1 $ 624,000 78000*8 S250,000 5000 50 $73,000 1025000-78000-624000-250000 11/15/2019 Equipment $ 3,948,000 Common Stock Paid-In Capital in Excess of Par Value-Common Stock (Equipment purchased by issuing Common Stock) $ 410,000 410000*1 S3,538,000 3948000-410000