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 4 million common shares, for $8 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. 13 Sold 80,000 of its common shares and 6,500 preferred shares for a total of $1,040,000.Nov. 15 Issued 425,000 of its common shares in exchange for equipment for which the cash price was known to be $4,008,000. Required:Prepare the appropriate journal entries to record each transaction.

Journal entries are the records that accountants make in a company's general ledger to document its…

Answered: During its first year of operations,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...

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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 4 million common shares, for $8 per share.
	13	Issued 40,000 common shares to attorneys in exchange for legal services.
	13	Sold 80,000 of its common shares and 6,500 preferred shares for a total of $1,040,000.
Nov.	15	Issued 425,000 of its common shares in exchange for equipment for which the cash price was known to be $4,008,000.

Required:
Prepare the appropriate journal entries to record each transaction.

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