1. 11-4 Reporting the Stockholders' Equity Section of the Balance Sheet [LO2, LO3, LO4]

Shelby Corporation was organized in January 2010 by 10 stockholders to operate an air conditioning sales and service business. The charter issued by the state authorized the following capital stock:

Common stock, $1 par value, 200,000 shares.

Preferred stock, $8 par value, 6 percent, 50,000 shares.

During January and February 2010, the following stock transactions were completed:

a.	Collected $40,000 cash from each of the 10 organizers and issued 2,000 shares of common stock to each of them.
b.	Issued 15,000 shares of preferred stock at $25 per share; collected in cash.

Net income for 2010 was $40,000; cash dividends declared and paid at year-end were $10,000.

Required:

Prepare the stockholders' equity section of the balance sheet at December 31, 2010. (Omit the "$" sign in your response.)

Stockholders' Equity%u2014December 31, 2010
Contributed capital:
Preferred stock	$
Additional paid-in capital, preferred stock
Common stock
Additional paid-in capital, common stock
Total contributed capital
Retained earnings
Total stockholders' equity	$

E11-1 Computing Shares Outstanding [LO1]

2.

The 2008 annual report for Fortune Brands, the seller of Pinnacle golf balls and MasterLock padlocks,disclosed that 750 million shares of common stock have been authorized. At the end of 2007, 235 million shares had been issued and the number of shares in treasury stock was 81 million. During 2008, 1 million common shares were reissued from treasury, and 5 million common shares were purchased for treasury stock.

Required:

(a)	Determine the number of common shares issued at the end of 2008. (Enter your answer in millions.)

Issued stock

(b)	Determine the number of common shares in treasury at the end of 2008. (Enter your answer in millions.)

Treasury stock

(c)	Determine the number of common shares outstanding at the end of 2008. (Enter your answer in millions.)

Shares outstanding