Issuance of shares; noncash consideration During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity

Issuance of shares; noncash consideration

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.

Feb. 12 Sold 2 million common shares, for $9 per share.

Feb 13  Issued 40,000 common shares to attorneys in exchange for legal services.

Feb 13   Sold 80,000 of its common shares and 4,000 preferred shares for a total of $ 945,000

Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.