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1. Ulrich Inc.'s Articles of Incorporation authorize the firm to issue 500,000 shares of $5 par-value common stock, of which 325,000 shares have been issued. Those shares were sold at an average of 12 percent over par. In the quarter that ended last week, Ulrich earned $260,000 net income; 4 percent of that income was paid as a dividend. Prior to the close of the books, Ulrich had $3,545,000 in retained earnings. The company owns no treasury stock.
a. Create the equity statement for Ulrich.
b. Create a new equity statement that reflects the sale of $25,000 authorized but unissued shares at the price of $4 per share.
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