Description
Exercise 18-5 (Algo) Issuance of shares; noncash consideration [LO18-4]
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 10 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share.
February 12 Sold 4 million common shares, for $9 per share.
February 13 Issued 43,000 common shares to attorneys in exchange for legal services.
February 13 Sold 70,000 of its common shares and 8,000 preferred shares for a total of $1,055,000.
November 15 Issued 440,000 of its common shares in exchange for equipment for which the cash price was known to be $4,068,000.
Required:
Prepare the appropriate journal entries to record each transaction.
