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Question - Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations:
January 2 Issues 100,000 shares of common stock for $31 per share.
February 6 Issues 2,600 shares of 8% preferred stock for $12 per share.
September 10 Purchases 10,000 shares of its own common stock for $36 per share.
December 15 Resells 5,000 shares of treasury stock at $41 per share.
Required - Record each of these transactions.
Discuss the different types of financial information that are relevant for investors. List the most common sources of information within each type.
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