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Problem 4 On January 1, 2015, the stockholders' equity section of Nance Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings $1.200.000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 30,000 shares for cash at $22 per share. July 1 Sold 6,000 treasury shares for cash at $27 per share. Sept. 1 Sold 5,000 treasury shares for cash at $19 per share. Instructions a. Journalize the treasury stock transactions. (20 pts) Problem 5 Mehring's 2015 financial statements contained the following data (in millions). Current assets Total assets Current liabilities Total liabilities Cash $17,890 42,430 12,000 32,580 380 Accounts receivable Interest expense Income tax expense Net Income $1,550 980 1.270 2,230 Instructions Compute these values: (10 pts) a. Working capital b. Current ratio. Problem 6 Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, to the corporate form of business organization. (10 pts) A- Advantage D = Disadvantage Characteristics 1. Separate legal entity Taxable entity resulting in additional taxes Continuous life 2. 3. 4. Government regulation 5. Ease of transfer of ownership Page 5