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Below Are Two Transactions for Navaho Co

question 182

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Below are two transactions for Navaho Co.
1. On June 1, Navaho Co. issued 2,000 shares of $5 par common stock for $16 per share.
2. On June 15, Navaho Co. issued 1,200 shares of $5 par preferred stock to acquire a building. The stock is not widely traded, and the current market value of the stock is not evident. The building has recently been appraised by an independent firm as having a market value of $15,000.
REQUIRED: For each of these transactions, identify the accounting equation effects on Navaho Company's books.


Definitions:

Rational Expectationists

Economists who argue that individuals make decisions based on their rational outlook, available information, and past experiences.

International Capital Flows

The movement of money for the purpose of investment, trade, or business production across international borders.

Central Bank

A bank whose chief function is the control of the nation’s money supply.

Marc Levinson

An economist, historian, and author known for his work on globalization, economics, and the history of business and technology.

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