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The stockholders' equity section of EI Giheny Corporation's balance sheet on December 31, 20 times 2 appears as follows: Contributed Capital: Prepare the journal assuming

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The stockholders' equity section of EI Giheny Corporation's balance sheet on December 31, 20 times 2 appears as follows: Contributed Capital: Prepare the journal assuming the following transactions occurred in sequence during 20 times 3: a) Issued 11,000 shares of $120 par value, 8 percent cumulative pre stock at par after obtaining authorization from the state. b) Issued 39,000 shares of common stock in connection with the conversion of bonds having a carrying value of $600,000 c) Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was $14 per share. d) Purchased 10,000 shares of common stock for the treasury at a cost of $16 per share. e) Earned net income of $450,000 f) Declared and paid the full year's dividend on the preferred stock and a dividend of $0.40 per share on common stock outstanding at the end of the year

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