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The company is authorized to sell 1,000,000 shares of $10 par value common stock

ID: 2349248 • Letter: T

Question

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
Prepare the stockholders' equity section of Smiley's balance sheet to reflect the transactions you have recorded. I just need the stockholders'equity section fot the above.

Explanation / Answer

No journal entry required.