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Skysong Inc. recently hired a new accountant with limited real - world experience in corporate accounting. Prior to starting the new job, the accountant was
Skysong Inc. recently hired a new accountant with limited realworld experience in corporate accounting. Prior to starting the new job, the accountant was very busy and was unable to review any texts on corporation accounting. During the first month, he made the following entries for the corporation's capital stock:
Purchased shares of common stock for the treasury at $ per share
Cash
Capital Stock
Gain on Sale of Stock
Sold shares of treasury stock at $ per share
On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. Use the cost method for treasury stock. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.
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