Question
The authorized share capital of the Alfred Cake Company is $100000 shares. Currently 20000 shares are issued and outstanding. The equity is currently shown in
The authorized share capital of the Alfred Cake Company is $100000 shares. Currently 20000 shares are issued and outstanding. The equity is currently shown in the company's book as follows:
Common Stock $60000
Retained Earnings 30000
Common equity 90000
a. How many more shares can be issued without the approval of shareholders?
b. If the company issues 10000 shares at $5 a share, show how this will appear in the company's books.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
