Question
Whyville Corporation obtained its charter from the state in January that authorized 500,000 shares of common stock, $1 par value. During the first year, the
Whyville Corporation obtained its charter from the state in January that authorized 500,000 shares of common stock, $1 par value. During the first year, the company earned $55,000 and declared no dividends; the following selected transactions occurred in the order given:
A. Issued 170,000 shares of the common stock at $20 cash per share.
B. Reacquired 4,700 shares at $21 cash per share to use as stock incentives for senior management.
A. Record the issuance of 170,000 shares of common stock with a $1 par value for a price of $20 per share.
B. Record the purchase of 4,700 previously issued shares of common stock for a price of $21 per share.
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