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.
- 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.
Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.
Required:
Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Journal Entry Worksheet
- 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.
- Nov15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.