How should cloudy day report the stock transactions

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Reference no: EM132483437

Question 1: How should Cloudy Day present the preferred stock issued to Well-to-Do Inc. on the balance sheet?

Question 2: How should Cloudy Day value the common stock repurchased from employees? CD will show stock repurchased from employees under heading of treasury stock in liability side of balance sheet. Amount will be $10 million.

Question 3: How should Cloudy Day account for the reissuance of the treasury stock to Well-to-Do Inc.?

Question 4: How should Cloudy Day report the stock transactions related to the agreement with Well-to-Do, Inc. on the cash flows statement?

Reference no: EM132483437

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