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Ber [7]
2 years ago
5

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol

ders’ equity. The articles of incorporation authorized the issue of 7 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share. Feb. 12 Sold 3 million common shares, for $9 per share. 13 Issued 46,000 common shares to attorneys in exchange for legal services. 13 Sold 86,000 of its common shares and 4,000 preferred shares for a total of $990,000. Nov. 15 Issued 375,000 of its common shares in exchange for equipment for which the cash price was known to be $3,808,000. Required: Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
NISA [10]2 years ago
5 0

Answer:

cash                          27,000,000 debit

       common stock                      3,000,000 credit

       additional paid-in               24,000,000 credit

--feb 12th issued shares--

legal services expense 414,000 debit

       common stock                      46,000 credit

       additional paid-in               368,000 credit

--feb 13th shares issued for legal services--

cash                  990,000 debit

  common stock                  86,000 credit

  additional paid-in CS       688,000 credit

  preferred stock                200,000 credit

  additional paid-in PS           16,000 credit

--february 13th issuance of common and preferred shares--

equipment           3,808,000 debit

       common stock                  375,000 credit

      additional paid-in CS      3,433,000 credit

--issuance of shares in exchange of equipment--

Explanation:

Feb 12th

cash proceeds: 3,000,000 x $9 = 27,000,000

common stock: 3,000,000 x $1 =    3,000,000

additional paid-in                            24,000,000

Feb 13th

as the market value of the shares is 9 dollars we recognize this to valued the shares issued for legal services:

46,000 x 9 = 414,000

46,000 x 1  =   46,000

additional      368,000

Feb 13th

we calculate the preferred stock value based on the price of the common shares

total:                                          990,000

common shares: 89,000 x 9 = (774,000)

preferred shares:                      216,000

now we calculate the additional paid-in:

additional on common shares: 86,000 x 8 = 688,000

preferred shares: 4,000 x 50 = 200,000

additional on preferred shares:   16,000

the equipment enter the accounting at his value so we calcualte the additional paid in by the difference:

3,808,000 Equipment - 375,000 face value of shares =  3,433,000

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Raw Materials Inventory, beginning to balance $36,000
lesya692 [45]

Answer:

1. Journal Entry                        Debit        Credit

  Raw materials inventory      $73,400

   ($72,000 + $1,400)

          Accounts payable                          $73,400

   (Being raw materials purchase on credit)

2. Journal Entry                        Debit        Credit

  Work in process                      $64,300

   ($64,000 + $300)

        Raw materials inventory                    $64,300

                   <u>Raw Material Inventory Account</u>

Beginning balance    $36,000  |  Work in process $64,300

Purchase                    $73,400  |                              <u>            </u>

                                                   | Ending balance    <u>$45,100</u>

                                                   |  ($36,000 + $73,400 - $64,300)

3 0
3 years ago
Pat manages the customer care department of her firm. She is very happy with her team of 15 customer care representatives​ who'v
Serggg [28]

Answer:

Motivation

Explanation:

<em>Motivation in work is when employees are incentivized due to their good performance</em>, this happens when they provide the company a greater value. There are two kinds of motivation:

  • Internal: it includes emotions and thoughts, <em>in the exercise given this internal motivation is letting the team know that they are doing good</em>
  • External: includes salary and work environment, <em>in the case given the bonuses are the external motivation</em>

I hope you find this information is useful and interesting! Good luck!

3 0
2 years ago
while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent​
goldenfox [79]

Answer:

$4,050

Explanation:

Grey has $4,500 for shopping.

She spent 90%  while on shopping.

The amount spent = 90/100 x $4500

=0.9 x $4,500

=$4,050

7 0
3 years ago
The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rationa
GaryK [48]

Answer: d) think at the margin.

Explanation:

A rational person is defined as some who makes decision with the intelligent thinking rather being emotional .This result usually results in sensible outcomes.

According to the Ten principles of Economics,it is supposed that a rational person tends to think intelligently and would prefer to make minute changes in the resources while taking decision so that optimal rate can be maintained and additional action can be further thought.

Other option are incorrect because purchasing items from smaller organization, sunk rate and average cost product equalizing with the price is not the decision ability of a rational person

7 0
3 years ago
15 points!
nordsb [41]

Answer:

rent

Explanation:

The rent expense will be difficult to revise. Usually, the rent amount is contained in a tenancy agreement signed by both the landlord and the tenant. The rent amount does not change until the lease or tenancy agreement expires. Changing the rent amount would require the landlord's consent.

Due to the above reasons, rent is classified as a fixed cost. It remains constant in the short run.

5 0
2 years ago
Read 2 more answers
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