Donnelly Corporation Is Authorized to Issue 1,000,000 Shares of $1

question 139

Essay

Donnelly Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2010, the company has the following stock transactions.
Jan. 15 Issued 400,000 shares of stock at $7 per share.
Sept. 5 Purchased 30,000 shares of common stock for the treasury at $8 per share.
Instructions
Journalize the transactions for Donnelly Corporation.

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Definitions:

Social Inequality

The existence of unequal opportunities and rewards for different social positions or statuses within a society or group.

Highly Rewarded Positions

Occupations or roles within a structure or system that offer significant compensation, prestige, or privileges compared to others.

Indian Constitution

The supreme law of India, laying down the framework demarcating fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental rights, directive principles, and the duties of citizens.

Caste System

A traditional social system in certain societies where people are divided into distinct ranks and classes from which it is difficult or impossible to move from one class to another.