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:
$\begin{array}{|l|l|}\hline \text { Jan-10 } & \text { Sold } 95,000 \text { common shares for } \$ 8 \text { per share cash. } \\\hline 15 & \begin{array}{l}\text { Exchanged 3,000 preferred shares for equipment with a fair market value of } \\\$ 45,000\end{array} \\\hline \text { Feb-01 } & \begin{array}{l}\text { Exchanged } 500 \text { preferred shares for legal fees incurred during organization } \\\text { worth } \$ 6,000 .\end{array} \\\hline\end{array}$

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Definitions:

Visual Nearsightedness

A common eye condition characterized by difficulty seeing distant objects clearly while close objects appear normal, also known as myopia.

Additional Utility

The extra satisfaction or benefit derived from consuming one more unit of a good or service.

Behavioral Economics

A field of study that analyzes the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.

Status Quo

The existing state of affairs or current condition, typically used to describe situations before any changes are made.