Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 18, Problem 18.5E
Issuance of shares; noncash consideration
• LO18–4
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
Required:
Prepare the appropriate
| Feb. 12 | Sold 2 million common shares, for $9 per share. |
| 13 | Issued 40,000 common shares to attorneys in exchange for legal services. |
| 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. |
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Section 6 Corporation’s Share Issuance Journal Entries
Sheryl Inc. is authorized to issue 70,000, $9, cumulative preferred shares, and 750,000 common shares. Required: Prepare journal entries to record the following transactions that occurred during the first quarter of operations: Jan. 2, 2022: Issued 95,000 common shares @ $6 per share for cash Feb. 20, 2022: Exchanged 8,500 common shares for machinery and equipment with a fair market value of $100,000. Mar. 26, 2022: Exchanged 800 common shares for $4,500 in legal fees incurred during the organization.
Exercise 18-5 (Algo) Issuance of shares; noncash consideration [LO18-4]
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 9 million common shares, $1 par per share, and 2 million preferred shares, $50 par per share.
1-February 12 Sold 4 million common shares, for $10 per share.
2-February 13 Issued 44,000 common shares to attorneys in exchange for legal services.
3-February 13 Sold 80,000 of its common shares and 3,000 preferred shares for a total of $980,000.
4-November 15 Issued 365,000 of its common shares in exchange for equipment for which the cash price was known to be $3,768,000.
Required:
Prepare the appropriate journal entries to record each transaction.
Note: 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 and not in…
Question 3:..
CL03
A. The following selected transactions pertain to L. Lewis Corporation:
Jan. 3 Issued 100,000 shares, $10 par value, common stock for $25 per share.
Feb. 10 Issued 6,000 shares, $10 par value, common stock in exchange for special purpose
equipment. L. Lewis Corporation's common stock has been actively traded on the stock
exchange at $30 per share.
Date
Account title
Debit
Credit
Chapter 18 Solutions
Intermediate Accounting, 10 Ed
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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