Transactions and Issuance of Common and Preferred Shares -

School: University Of Central Missouri - Course: ACCT 1 - Subject: Accounting

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BE IS-5 Duringitsfirstyearofoperations,EasternDataLinksCorporationenteredinto the followingtransactions relating to shareholders' equity. The articlesofincorporationauthorizedtheissueof8millioncommonshares,$1 parper share,andI million preferred shares, $50par pershare. Preparethejournalentriestorecord thefollowingtransactions: Feb12—Sold2millioncommonsharesfor$9 pershare. Feb13—Issued40,000commonsharestoattorneysin exchangefor legalservices. Feb13-Sold80,000ofitscommonsharesand 4000preferredshares fora totalof $945,000. Nov15—Issued380,000ofitscommon sharesinexchangefor equipment for whichthe cash pricewas known tobe $3,688,000. tae") @ QC0006 @5688 RRs"00 0can 9-0.9000 GS 2 as OOD 2 q 06 80 000 frc B to, 000 0000 CSI') 6k0 000 2 s-,oö0 330 30000 % co—oe gef-.øre-s