1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
-BARSIC- [3]
3 years ago
13

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 6 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share.
Prepare the appropriate journal entries to record each transaction:
Feb. 12 Sold 2 million common shares for $9 per share
Cash (2 million x $9) 18 000 000
All Rights Received
Cash (2 million
x $9) 18,000,000
Common stock (2 million x $1) 2,000,000
PIC in excess of par-C/S (2 million x $8) 16,000,000
Feb. 13 Issued 40,000 common shares to attorneys in exchange for legal services
Legal expense (40,000 x $9) 360,000
Common stock (40,000 x $1) 40,000
PIC in excess of par-C/S (40,000 x $8) 320,000
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
5 0

Answer:

Eastern Data Links Corporation

Journal entries

Step 1.

Issuance for Common stock at a premium in exchange for cash

Feb 12,

Dr. Cash account with $18,000,000

Cr. $1 Ordinary share Capital Account with $2,000,000

Cr. Ordinary share premium Account with $16,000,000

(Being $18million received for 2million shares valued at $1 and sold at a premium of $9)

Step 2.

Issuance for Common stock at a premium in settlement of a liability due

Feb 13,

Dr. Accounts Payable account with $360,000

Cr. $1 Ordinary share Capital Account with $40,000

Cr. Ordinary share premium Account with $320,000

(Being $360,000 legal expense liquidation in exchange of 40,000 shares valued at $1 and sold at a premium of $9)

You might be interested in
The following information pertains to Lee Corp.'s defined benefit pension plan for year 2:Service cost $160,000Actual and expect
serious [3.7K]

Answer:

$180,000

Explanation:

This can be calculated as follows:

Pension cost in year 2 = Service cost + Prior service cost amortization + Interest cost - Actual and expected return on plan assets

Therefore, we have:

Pension cost in year 2 = $160,000 + $5,000 + $50,000 - $35,000 = $180,000

Therefore, Lee report should $180,000 as pension cost in its year 2 income statement.

3 0
3 years ago
The current liability for Wages Payable (or Accrued Payroll) represents the:
Rainbow [258]

Answer:

2.

Explanation:

The current liability for Wages Payable (or Accrued Payroll) represents the net pay earned by employees for which they have not yet been paid. This amount  is entered into the company's balance sheet as a entry that is being adjusted and is then changed at the end of the month as a current liability that the company needs to pay.

4 0
3 years ago
The board of commissioners of the City of Hartmoore adopts a general fund budget for the year ending June 30, 2020. It includes
Natalka [10]

Solution :

Estimated revenues = $1,530,000

Other financing sources - bond proceeds = $402,500

Appropriations = $1,100,000

Est other fin uses = $502,500

Budgetary fund balance = $195,000

Appropriations = $1,100,000

Est other fin uses = $502,500

Budgetary fund balance =  $195,000

Est Rev = $1,530,000

Other fin sources bond proceeds = $402,500

6 0
3 years ago
A condition where people tend to perceive themselves in terms of their class background and this shapes their relationships with
Shtirlitz [24]

Answer:

Class consciousness

Explanation:

Class consciousness is when someone is aware of his or her place within a social class. It is a situation whereby someone is aware of their social or economic class in comparison to others and in understanding the class such belongs to in the society. Class consciousness was an idea of Marxist theory a social thinker.

3 0
3 years ago
Read 2 more answers
The Sherman Antitrust Act imposed limitations upon which group?
larisa86 [58]
Definitely c). because this is the group this act applied most to
8 0
3 years ago
Other questions:
  • Mcdonald's sells tacos for breakfast in arizona because its marketers have identified a _____ segment.
    13·2 answers
  • If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF
    15·1 answer
  • Comparing ABC and Plantwide overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The contro
    10·1 answer
  • The net income reported on the income statement is $58,000. However, adjusting entries have not been made at the end of the peri
    5·1 answer
  • What is the purpose of collateral in a secured loan?
    8·1 answer
  • Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of o
    5·1 answer
  • Aamir is preparing a research paper. he needs to insert a parenthetical reference that gives credit to the source of a quotation
    5·1 answer
  • QUESTION 7 of 10: What is an advantage of selling consumable items?
    10·2 answers
  • Nezzie invests in 300 shares of stock in the fund shown below. Name of Fund NAV Offer Price LKIT Mid-Cap $16. 58 $16. 99 Nezzie
    14·1 answer
  • Question 2 of 10
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!