Soper Classic Music, Inc.’s corporate charter allows it to sell 250,000 shares of $1 par value common stock. To date, the company has issued 150,000 shares for a total of $225,000. Last month, Soper Classic repurchased 1,000 shares for $2.00 per share.

1. If Soper Classic were to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding?

2. In addition to the shareholders’ equity given previously, Soper Classic also has $285,000 in retained earnings. Using this information, prepare the shareholders’ equity section of Soper Classic Music, Inc.’s balance sheet.