Question

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 6 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share.

   

Feb. 12	Sold 2 million common shares, for $9 per share.
13	Issued 45,000 common shares to attorneys in exchange for legal services.
13	Sold 85,000 of its common shares and 3,500 preferred shares for a total of $985,000.
Nov. 15	Issued 370,000 of its common shares in exchange for equipment for which the cash price was known to be $3,788,000.

   

Note: FMV of the common stock is $9 per share

  

Answer 1