During its first year of operations, Easten Data Links Corporation entered into
ID: 2547219 • Letter: D
Question
During its first year of operations, Easten Data Links Corporation entered into the following transactions relating to shareholders equity. The articles of incorporation authorized the issue of 10 million common shares. $1 par per share, and 3 million preferred shares. $50 par per share. Feb, 12 Sold 4 sillion comon shares, for $9 per share. 13 Issued 43.000 cmon shares to attorneys in exchange for legal servides 13 Sold 70,000 of its connon shares and 8.000 pref erred shares for a total of $1,055,000 Nov. 15 Issued 440,000 of its connon shares in exchange for equipnent for which the cash price was known to be 34.068,000 Required: Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular tronsaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list nces Journal entry worksheet Sold 4 million common shares, for $9 per share. Note: Enter debits before credits. General Journal Debit Credit February 12 Clear entry View general journal Record entryExplanation / Answer
Date Particulars Debit Credit Feb 12 Cash (4 million * $9) 3,60,00,000 Common stock (4 million x $1) 40,00,000 Paid-in-capital – excess of par (4 million x $8) 3,20,00,000 Feb 13 Legal expenses (43,000 shares x 9 per share) 3,87,000 Common stock (43,000 shares x 1 par) 43,000 Paid-in-capital – excess of par (43000*8) 3,44,000 Feb 13 Cash 10,55,000 Common stock (70,000 shares x 1 par) 70,000 Paid-in-capital – excess of par, common(70000*8) 5,60,000 Preferred stock (8,000 shares x 50 par) 4,00,000 Paid-in-capital – excess of par, Prefferd 25,000 Nov 15 Equipment 40,68,000 Common stock (440000 x $1) 4,40,000 Paid-in-capital – excess of par (Difference) 36,28,000
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