Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The shareholders equity section of Superior Corporations balance sheet as of December 31, 2015, is as follows: Shareholders Equity Preferred stock, $100 par value; authorized,
The shareholders equity section of Superior Corporations balance sheet as of December 31, 2015, is as follows:
Shareholders Equity | |
Preferred stock, $100 par value; authorized, 300,000 shares; issued, 34,500 shares | $3,450,000 |
Common stock, $5 par value; authorized, 2,000,000 shares; issued, 405,000 shares | 2,025,000 |
Paid-in capital in excess of parpreferred | 97,000 |
Paid-in capital in excess of parcommon | 897,000 |
Retained earnings | 3,200,000 |
$9,669,000 |
The following events occurred during 2016:
Jan. 5 | 10,000 shares of authorized and unissued common stock were sold for $7 per share. |
16 | 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. |
Apr. 1 | 76,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock. |
Sept. 1 | 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $390,500. The preferred stock currently trades on the New York Stock Exchange at a price of $109 per share. |
Dec. 1 | 26,000 shares of treasury stock are reissued at a price of $26 per share. |
Required
1. | Prepare journal entries for each of the above transactions. |
2. | Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2016. |
3. | Calculate Superiors legal capital at December 31, 2016. |
4. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2016.
Authorized common shares:
Issued:
Outstanding:
Calculate Superiors legal capital at December 31, 2016.
Total legal capital $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started