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12 July, 19:59

During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 200 shares of the company's own common stock at $23 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $24 cash per share. c. Sept. 1 Sold 100 of the shares purchased on February 1 for $22 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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  1. 12 July, 20:05
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    Feb. 1

    Common Stock $4,600 (debit)

    Cash $4,600 (credit)

    Jul. 15

    Cash $3,120 (debit)

    Common Stock $3,120 (credit)

    Sept. 1

    Cash $2,860 (debit)

    Common Stock $2,860 (credit)

    Explanation:

    Feb. 1

    Common Stock $4,600 (debit)

    Cash $4,600 (credit)

    200 shares * $23 = $4,600

    Jul. 15

    Cash $3,120 (debit)

    Common Stock $3,120 (credit)

    130 shares * $24 = $3,120

    Sept. 1

    Cash $2,860 (debit)

    Common Stock $2,860 (credit)

    130 shares * $22 = $2,860
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