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Worldwide Company obtained a charter from the state in January 2013, which authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,000 and the following selected transactions occurred in the order given:
a. Issued 58,000 shares of the common stock at $12 cash per share.b. Reacquired 1,800 shares at $15 cash per share from stockholders.
c. Reissued 900 of the shares of the treasury stock purchased in transaction (b) two months later at $18 cash per share.indicating the account, amount, and direction of the effect for the above transaction.Prepare journal entries to record each transaction.Prepare the stockholders' equity section of the balance sheet at December 31, 2013. TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year.
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