Question

Q18

Check my work 18 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 2 million preferred shares, $50 par per share. 0.35 points Feb. 12 Sold 4 million common shares, for $10 per share. 13 Issued 47,008 common shares to attorneys in exchange for legal services. 13 Sold 75,800 of its common shares and 4,500 preferred shares for a total of $995,eee Nov. 15 Issued 388,e0e of its comnon shares in exchange for equipment for which the cash price was known to be $3,828,ee0. eBook Print References Required: Prepare 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 Journal entry worksheet Sold 75,000 of its common shares and 4,500 preferred shares for a total of S995,000 Note: Enter debits before credits Pre 18 ofNext>

please show all the formulas and where you got the numbers.

Answer 1

		Eastern Data Link Corporation
		Journal Entries
	Date	Account Title & Explaination	Debit	Credit
	12-Feb	Cash(4000000@$10)	$ 4,00,00,000.00
		To Common Stock(4000000@$1)		$     40,00,000.00
		To Paid in Capital excess of par		$ 3,60,00,000.00
		(Being amount of sold 4 million common stock @$10 per share)
	13-Feb	Legal Expenses(47000 shares @$9)	$       4,23,000.00
		To Common Stock(47000 shares@$1)		$           47,000.00
		To Paid in capital excess of Par(47000 shares @$8)		$       3,76,000.00
		(Being amount of issued common stock to attorney in exchange of legal service)
	13-Feb	Cash	$       9,95,000.00
		To Common Stock(75000 shares @$1)		$           75,000.00
		To Paid in capital excess of par(Common Stock)=(75000 shares @$8)		$       6,00,000.00
		To Preferred Stock=(75000 shares @$50)		$       2,25,000.00
		To Paid in Capital excess of Preferred Stock(Balancing figure)		$           95,000.00
		Common Stock in earlier transaction is sold for $9 per share , so in this transaction we also assumed same price
	15-Nov	Equipment(given)	$     38,28,000.00
		To Common Stock(380000 shares @$1)		$       3,80,000.00
		To Paid in Capital excess of Par=($3828000-$380000)		$     34,48,000.00
		(Being amount of Equipment purchased by issuing common stock of 380000)