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

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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par...

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During its first year of operation, Victory Inc. entered into the following transactions relating to shareholders equity. Victory’s articles of incorporation authorized the issue of 240,000 ordinary shares, 10 par per share, and 30,000 preference shares for 100 per share. March 14 - sold 50,000 ordinary shares for 100 per share. March 15 - issued 20,000 ordinary shares to lawyers in exchange for legal services amounting to 300,000. March 15 - sold 35,000 of its ordinary shares and 10,000 preference shares for 6,000,000. Fair value of the ordinary share is 100. November 20 - issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be 185,000. Based on the preceding information, determine the total shareholders equity
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