Prepare Journal Entries to Record the Following Transactions That Occurred

question 47

Essay

Prepare journal entries to record the following transactions that occurred during the first 2 months of operations:
$\begin{array}{|l|l|}\hline \text { Jan-10 } & \text { Sold } 95,000 \text { common shares for } \$ 8 \text { per share cash. } \\\hline 15 & \begin{array}{l}\text { Exchanged 3,000 preferred shares for equipment with a fair market value of } \\\$ 45,000\end{array} \\\hline \text { Feb-01 } & \begin{array}{l}\text { Exchanged } 500 \text { preferred shares for legal fees incurred during organization } \\\text { worth } \$ 6,000 .\end{array} \\\hline\end{array}$