Asked by Gabriel Barrowman on Jun 24, 2024
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Prepare entries to record the transactions for Maine Corp.:
(a)Issued 2,000 shares of $10 par common stock at $72 for cash.(b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000.(c)Purchased 400 shares of treasury stock at $70.(d)Sold the 400 shares of treasury stock purchased in (c) at $76.
Treasury Stock
Shares that were once in circulation but were bought back by the issuing company, decreasing the amount of stock outstanding.
Par Common Stock
The nominal or face value assigned to a share of common stock by the company's corporate charter.
Fair Market
The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.
- Attain knowledge regarding the issuance of stocks and its impact on the equity held by shareholders.
- Scrutinize and prepare ledger documents for transactions involving stocks, specifically focusing on the reacquisition and subsequent redistribution of treasury shares.
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Learning Objectives
- Attain knowledge regarding the issuance of stocks and its impact on the equity held by shareholders.
- Scrutinize and prepare ledger documents for transactions involving stocks, specifically focusing on the reacquisition and subsequent redistribution of treasury shares.
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