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The following correctly prepared entries without explanations pertain to Corners Corporation:
The original sale (Entry 1) was for 200,000 shares, and the treasury stock was acquired for $6 per share (Entry 2).
Required:
a. What was the sales price per share of the original stock issue?
b. How many shares of stock did the corporation acquire in Entry2?
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500 and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th day and took discounts.
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Do you believe these statements are true, or do you think that they are too cynical and how do feel the accounting standards can be modified for our modern needs?
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