Question
A company allows the insurance of a maximum of 5,000,000 shares of $1 par value common stock. On February 1st, it issued 3,000,000 shares at
A company allows the insurance of a maximum of 5,000,000 shares of $1 par value common stock. On February 1st, it issued 3,000,000 shares at $20 per share. On July 10th, it acquirred 40,000 of these shares as treasury stock for $18 per share. 1. How many shares were authorized? 2. Prepare the journal entry for February 1st. 3. Prepare the journy entry for July 10th. 4. How many shares are outstanding as of July 30th? 5. On November 1st, the company sold 9,000 of its Tresuary shares for $21; prepare the journal entry.
Please show work for any calculations needed.
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