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Unformatted text preview: 18-5During its first year of operations, Eastern Data Links Corporation entered into the following transactions reshares, $50 par per share.Required:Prepare the appropriate journal entries to record each transaction.Feb. 12Sold 2 million common shares, for $9 per shar13Issued 40,000 common shares to attorneys in elegal services.13Sold 80,000 of its common shares and 4,000 pfor a total of $945,000.Nov. 15Issued 380,000 of its common shares in exchanequipment for which the cash price was known$3,688,000.Feb. 12 Sold 2 million common shares, for $9 per share. Bank A/c..................Dr debits and credits reversedTo Common Stock A/cTo Paid in capital in excess of par16million13 Issued 40,000 common shares to attorneys in exchange for legal services. Goodwill A/c..................Dr no goodwill in stock transactions, debit legal e360000To Common Stock A/ccredit common stock for 40,000 and PIC for 3213 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Bank A/c..................Dr debits and credits reversed, debit cash 945,000To Common Stock A/cTo Preferred stock A/cTo Paid in capital in excess of parseparate accounts for PIC, common and preferNov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,68Equipment A/c..................Dr debits and credits reversed, common stock is cTo Common Stock A/c...
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This note was uploaded on 02/29/2012 for the course INTERMEDIA 301 taught by Professor ?? during the Spring '12 term at Post.
- Spring '12