Classify stock and prepare shareholders' equity section of balance sheet. (LO 1, 5) Womack Grove Entertainment Inc.'s
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Classify stock and prepare shareholders' equity section of balance sheet. (LO 1, 5) Womack Grove Entertainment Inc.'s corporate charter allows it to sell 300,000 shares of \(\$ 2\) par value common stock. To date, the company has issued 100,000 shares for a total of \(\$ 275,000\). Last month, Womack Grove repurchased 500 shares for \(\$ 3.75\) per share.
a. If Womack Grove were to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding?
b. In addition to the shareholders' equity given above, Womack Grove also has \(\$ 415,000\) in retained earnings. Using this information, prepare the shareholders' equity section of Womack Grove Entertainment Inc.'s balance sheet.
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