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ABC Company issued 4 million of its common shares and also 4 million of its...

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Question

Accounting

ABC Company issued 4 million of its common shares and also 4 million of its preferred, $10 par value, for a total cost of 100 million. However, today's Wall Street Journal lists ABC's common shares at $10 per share. There is no established market price for the preferred shares.

Required:

Provide the journal entries to record the sale of the shares for $100 million.

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