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a)Issued 100,000 shares of common stock at $5 each; 1,000,000 shares are authorized at $1 par value.b)Issued 10,000 shares of common stock for a building and land. The building was appraised for $20,000, but the value of the land is undeterminable. The stock is selling for $10 ob the open market.c)Purchased 1,000 shares of its own common stock on the open market for $16 per share.d)Declared a dividend of $0.10 per share on outstanding common stock. The dividend is to be paid after the end of the first year of operations. Market value of the stock is $26.e)Declared a 2-for -1 stock split. The market value of the stock was $37 before the stock split.f)Reported $180,000 of income for the year.
1.Indicate each transaction's effect on the assets, liabilities and stockholder's equity of Horton Inc.2.Prepare the stockholder's Equity section of the balance sheet.3.Write a paragraph that explains the number of shares of stock issued and outstanding at end of the year.
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