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Question - The authorized share capital of the Alfred Cake Company is 150,000 shares. The equity is currently shown in the company's books as follows:
Common stock ($1 par value) $75,000
Additional paid-in capital 25,000
Retained earnings 45,000
Common equity $145,090
Treasury stock (2,000 shares) 19,000
Net common equity $126,000
Required -
a. How many shares are issued?
b. How many shares are outstanding?
c. How many more shares can be issued without the approval of shareholders?
Determine and Prepare general journal entries to record these transactions. Post the ledger accounts and enter the balance after each posting.
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Problem - Prepare the following journal entries. Indicate which account should be debited and which account should be credited
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