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 s...

Req 1 a Equipment A 216 Cash A 211 Note Payable longterm L 5 b Cash A 21 C ...

Refer 2-5. a. Purchased $ 216 in equipment; paid by signing a $ 5 long- term note

Question:

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 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).

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...