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ABC Inc, was incorporated on 1/15/12. Their corporate charter authorized th following capital stock: Prefered Stock: 7%, Par value $100 per share, 100,000 shares.
Common stock: $1 par value, 500,000 shares.
THe following ransactions occured during the year:
Required:
1. Prepare the journal entry for each transaction listed above.
2. In your own words, explain the main differences between common and preferred stock.
Which of the following requires recognition in the auditor's report as to consistency?
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