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The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company's book as follows: Common stock
The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company's book as follows: Common stock ($2 par value) $79,000; Additional paid-in capital $29,000; Retained Earnings $49,000 which total $157,000: Common equity consist of Treasury Stock (4,000 shares) $23,000.00; net common equity $134,000 a. Suppose that the company issues 29,000 shares at $5 a share. Construct the revised equity account. What is the Common stock_________?, what is Additional paid-in capital_______? what is retained earnings _______?, common equity ________? Treasury stock _______? and Net common equity ________? b. What would happen to the companys' books if instead it bought back 11,000 shaes at $5 per share? Construct the revised equity accounts. What would common stock be $_________?; Additional paid-in capital________?; Retained earnings _______?; Common equity ________?; Treasury stock _________?; and Net common equity $_________
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