Please answer ASAP 1. During its first year of operations, Yankee Communications

Question

Please answer ASAP 1. During its first year of operations, Yankee Communications entered into the following transactions relating to shareholders' equity. The articles of incorporation authorized the issue of 240 million common shares, $1 par per share, and 30 million preferred shares, $50 par per share Required: Prepare the appropriate journal entries to record each transaction: Sold 60 million common shares, for $10 per share. Issued 1 million common shares to attorneys in exchange for legal services. Sold 3 million of its common shares and 1 million preferred shares for $90 February 13 February 14 February 14 million Issued 190,000 of its common shares in exchange for equipment for which the cash price was known to be $1,844,000. November 16

Explanation / Answer

Date Accounts title Dr Cr 13-Feb Cash (60000000*10) 600000000 Common stock 60000000 Paid in capital in excess of par-Common stock 540000000 14-Feb Legal expenses 1000000 Common stock 1000000 14-Feb Cash 90000000 Common stock 3000000 Preferred Stock 50000000 Paid in capital in excess of par 37000000 16-Nov Equipment 1844000 Common stock 190000 Paid in capital in excess of par-Common stock 1654000

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