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E 185 Issuance of shares; noncash consideration LO184 During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to
E 185 Issuance of shares; noncash consideration
LO184
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 1 million preferred shares, $50 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Feb. 12 | Sold 2 million common shares, for $9 per share. |
13 | Issued 40,000 common shares to attorneys in exchange for legal services. |
13 | Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. |
Nov. 15 | Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000. |
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