The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is...
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Accounting
The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the companys books as follows: Common stock ($2 par value) $ 67,000 Additional paid-in capital 17,000 Retained earnings 37,000 Common equity 121,000 Treasury stock (2,000 shares) 11,000 Net common equity $ 110,000 a. Suppose that the company issues 17,000 shares at $4 a share. Construct the revised equity accounts. Common stock $ Additional paid-in capital Retained earnings Common equity Treasury stock Net common equity $ b. What would happen to the companys books if instead it bought back 8,000 shares at $4 per share? Construct the revised equity accounts. Common stock $ Additional paid-in capital Retained earnings Common equity Treasury stock Net common equity $
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