lecture11_solutions - E1110 Req 1 a Cash(20,000 shares x...

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E11–10. Req. 1 a. Cash (20,000 shares x $20) (+A) . ......................................... 400,000 Common stock, no-par (+SE) . ........................................... 400,000 . b. Cash (6,000 shares x $40) (+A) . ........................................... 240,000 Common stock, no-par (+SE) . .......................................... 240,000 c. Cash (7,000 shares x $30) (+A) . ........................................... 210,000 Preferred stock (7,000 shares x $10) (+SE) . ..................... 70,000 Contributed capital in excess of par, preferred (+SE) . ....... 140,000 Req. 2 Yes, it is ethical as long as there is a full disclosure of relevant information. In any arm’s length transaction, an informed buyer will pay the market value of the stock. E11–16. Req. 1 Feb. 1: Treasury stock, common (160 shares x $20) (+XSE, -SE) 3,200 Cash (-A) . ...................................................................... 3,200 July 15: Cash (80 shares x $21) (+A) . ............................................ 1,680
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lecture11_solutions - E1110 Req 1 a Cash(20,000 shares x...

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