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. The following are the transactions for Smiley, Inc. 1. The company is authorized to sell 1,000,000 shares of $10 par value common stock and
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The following are the transactions for Smiley, Inc. | |
1. | The company is authorized to sell 1,000,000 shares of $10 par value common stock and 50,000 shares of $100 par value 6 percent preferred stock. |
2. | As of the end of the current year, the company has actually sold 550,000 shares of common stock at $12 per share |
3. | It has also sold 40,000 shares of preferred stock at $110 per share. |
4. | 40,000 shares have been repurchased at $60 per share and are currently being held in treasury to be used to meet the future requirements of a stock option plan that the company intends to implement. |
a. | Prepare the general journal entries required to record all of the above transactions.
b. Prepare the stockholders' equity section of Smiley's balance sheet to reflect the transactions you have recorded. |
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