Question

Exercise 18-5 Issuance of shares; noncash consideration [LO18-4] During its first year of operations, Eastern Data Links Corporation entere million preferred shares, $50 par per share. Feb. 12 Sold 3 million common shares, for $10 per share. 1.42 points shareholders' equity. The articles of incorporation authorized the Ilssue of 8 milion common shares, $1 par per share, and 2 d into the following transactions relating to 13 Issued 36,000 common shares to attorneys in exchange for legal services 13 Sold 77,000 of its common shares and 4,500 preferred shares for a total of $1,020,000. Nov. 15 Issued 405,000 of its coemon shares in exchange for equipment for which the cash price was known to be $3,928,000. ReferencesRequired: Prepare the appropriate journal entries to record each transaction. (f no entry is required for a particular transaction, select No journal entry required" in the first account field. Enter your answers in whole dollars.) Journal entry worksheet 2 Sold 3 million common shares, for $10 per share. .Prev 1 of 7 Next>

can tou please solve the journal entry worksheet, all the information for the question arr above. thank you.

Answer 1

		Journal Entries
Date	Account Title	Debit-$	Credit-$
12-Feb	Cash-3000000*$10	30000000
	Common Stock-3000000*$1		3000000
	Additional Paid in Capital-Common Stock-3000000*9		27000000
	to record issuance of common stock
13-Feb	Legal-(36000*$10)	360000
	Common Stock-(36000*$1)		36000
	Additional Paid in Capital-Common Stock-(36000*$9)		324000
	to record issuance of common stock
	in exchange of legal services
13-Feb	Cash	1020000
	Common Stock-77000*$1		77000
	Additional Paid in Capital-Common Stock-77000*$9		693000
	Preferred Stock-4500*$50		225000
	Additional paid in capital-Preferred Stock-difference		1861000
	to record issuance of common stock and preferred stock
15-Nov	Equipment	3928000
	Common Stock405000*$1		405000
	Additional Paid in Capital-Common Stock-Difference		3523000
	to record issuance of common stock in exchange of equipment