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11- During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders equity. The articles of incorporation authorized
11- 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 1 million preferred shares, $50 par per share.
Feb. | 12 | Sold 2 million common shares, for $10 per share. | ||
13 | Issued 35,000 common shares to attorneys in exchange for legal services. | |||
13 | Sold 76,000 of its common shares and 4,000 preferred shares for a total of $1,015,000. | |||
Nov. | 15 | Issued 400,000 of its common shares in exchange for equipment for which the cash price was known to be $3,908,000. |
Required: Prepare the appropriate journal entries to record each transaction.
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