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
You have been working as an assistant manager in Mimi and Jasmine's (M&J) warehouse. M&J is an innovative cosmetics comp
miskamm [114]
Whatas the question i work at chilis so im a genius at servers answers with the needed things and idk where im going i hate my job and life but like besides the pioint wheres the question
7 0
3 years ago
The most preferred technique for determining how much life insurance coverage is needed for an individual is:
beks73 [17]

<span>In dermining how much life insurance coverage is needed for an individual , you have to consider first, to determine annual income needs of your family if you were to die today. Because you have to consider any lifestyle changes that might happen after te death and include current expenses such as mortgage, rent, groceries, clothing, utility bills, entainment, travel, transportation and child care. Next, you have to subtract available income from annual income needs. Then, determine the principal needed to generate income to be replaced (annual income to be replaced) devided by (rate of return) = amount of principal needed. Next, Add one-time expenses of your survivors will have to pay including funeral expenses. Lastly you have to subtract one-time gains such as the total amount of money or profit that is made from other life insurance policies, assets from selling a business or other payouts.</span>

5 0
3 years ago
What does SME stand for
boyakko [2]

Answer:

Subject Matter Expert and Small and Medium Enterprise

Explanation:

the abbreviation for "Subject Matter Expert"

and "Small and Medium Enterprise"

5 0
3 years ago
Read 2 more answers
Purposely understaffing customs offices to cause time delays, requiring special licenses that take a long time to obtain, and re
crimeas [40]

Answer: B Administrative delays

Explanation:

Administrative delay means: any Governmental Entity’s failure to act within a reasonable time, in keeping with standard practices for such Governmental Entity, or within the time contemplated in the Interagency Cooperation Agreement, the Planning Cooperation Agreement, any of the Land Acquisition Agreements, the Tax Allocation Agreement, any Acquisition and Reimbursement Agreement.

7 0
3 years ago
Read 2 more answers
To assign overhead costs to each product, the company:_____.
mina [271]

Answer:

a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

4 0
2 years ago
Other questions:
  • Parrett Corp. acquired one hundred percent of Jones Inc. on January 1, 2018, at a price in excess of the subsidiary's fair value
    9·1 answer
  • Outline Maslow's theory of motivation...
    6·1 answer
  • You are opening up a brand new retail strip mall. You presently have more potential retail outlets wanting to locate in your mal
    6·1 answer
  • What are the three reasons that companies import?
    8·1 answer
  • Which of the following is not a reason for passing the equal pay act of 1963​
    14·1 answer
  • Dana believes that a new phone to be sold by Ear Fruit Inc. will become the most popular phone in the global market. Dana enters
    10·1 answer
  • Accents Associates sells only one product, with a current selling price of $130 per unit. Variable costs are 60% of this selling
    9·1 answer
  • Identify 3 advantage of sales promotion
    14·1 answer
  • Jenna Jeffries started her business baking dog treats by investing cash of $1,000. During May, its first month of operations, Je
    13·1 answer
  • Need help with questions 1-5
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!