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Refer 2-5.
a. Purchased $ 216 in equipment; paid by signing a $ 5 long- term note and fulfilling the rest with cash.
b. Issued $ 21 in additional common stock for cash contributions made by stockholders.
c. Several NIKE investors sold their own stock to other investors on the stock exchange for $ 110 per share of stock.
Required:
1. For each of the events in E2- 5, prepare journal entries, checking that debits equal credits.
2. Explain your response to event (c).
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