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Recording Journal Entries
Lightning Fast Computer Company recently began operations and had the following transactions related to common stock. Prepare journal entries for each transaction.
a. 16,000 shares of $2 par value common stock were sold at a price of $25 a share.
b. 1,500 shares of common stock were reacquired by the issuing firm at $45 per share.
c. A dividend of $6 per share was declared and paid.
d. a 10% stock dividend was declared and distributed when the market price per share was $40.
Organize journal entries to reflex how the transaction and events would be recorded for governmental fund statements and government-wide statements.
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