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Please answer the three required questions above! Mesa Company is authorized to issue 1,000,000 shares of its $5 par value common stock and 600,000 shares
Please answer the three required questions above!
Mesa Company is authorized to issue 1,000,000 shares of its $5 par value common stock and 600,000 shares of its $10 par value preferred stock. During 2018 - its first year of business - the company earned $650,000 of net income and had the following select transactions. No dividends were declared or paid throughout the year. The net income and events below are the only ones that impact Stockholders' Equity this year. 1. Issued 300,000 shares of common stock for $35 per share 2. Issued 100,000 shares of preferred stock for $55 per share 3. Reacquired 80,000 shares of common stock at $30 per shares 4. Reissued 20,000 shares from treasury for $33 per share 5. Reissued 10,000 shares from treasury for $35 per share 6. Reissued 20,000 shares from treasury for $25 per share 7. Reissued 5,000 shares from treasury for $27 per share Required: 1. Prepare journal entries OR a financial statements effects template to record the above transactions. 2. List two benefits of Preferred Stock over Common Stock. What are two other possible benefits that Preferred Stock might provide? 3. Define the following terms: a. Authorized stock b. Issued stock c. Outstanding stock d. Treasury stock e. Market capitalization f. Other Comprehensive Income
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