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 7 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. Feb. 12 Sold 2 million common shares, for $9 per share. 13 Issued 42,000 common shares to attorneys in exchange for legal services. 13 Sold 82,000 of its common shares and 3,000 preferred shares for a total of $910,000. Nov. 15 Issued 355,000 of its common shares in exchange for equipment for which the cash price was known to be $3,728,000. 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.)

Answer 1

Answer:

Note:

The Journal Entry dated Feb 13 was recorded at the value at which Common stock was issued on Feb 12.