Preferred stock, $100 par value; authorized, 210,000 shares; issued, 21,000 shar
ID: 2501296 • Letter: P
Question
Preferred stock, $100 par value; authorized, 210,000 shares; issued, 21,000 shares $2,100,000 Common stock, $5 par value; authorized, 1,400,000 shares; issued, 280,000 shares 1,400,000 Paid-in capital in excess of par—preferred 105,000 Paid-in capital in excess of par—common 595,000 Retained earnings 3,000,000 $7,200,000 The following events occurred during 2013: Jan. 5 30,000 shares of authorized and unissued common stock were sold for $10 per share. Jan. 16 30,000 shares of authorized and unissued preferred stock were sold for $109 per share. April 1 40,000 shares of common stock were repurchased for the treasury at a price of $15 per share. Superior uses the cost method to account for treasury stock. Sept. 1 4,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $444,000. The preferred stock currently trades on the New York Stock exchange at a price of $109 per share. Dec. 1 15,000 shares of treasury stock are reissued at a price of $20 per share Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2013. Authorized common shares: shares Issued shares: shares Outstanding shares: Calculate Superior's legal capital at December 31, 2013. Total legal capital :
Explanation / Answer
Answer: (a)
Answer: (b)
Working Note:
Journal Entries
Preferred Stock, 100 Par Value, Issued Shares 21000 2100000 Common Stock, 5 Par Value, Issued Shares 280000 1400000 Paid in Capital in Excess of Par - Preferred 105000 Paid in Capital in Excess of Par - Common 595000 Retained Earnings 3000000