Question
The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2012, is as follows: Shareholders Equity Preferred stock, $100 par value; authorized,
The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2012, is as follows: Shareholders Equity
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 parpreferred 84,000
Paid-in capital in excess of parcommon 595,000
Retained earnings 3,800,000 $7,979,000
The following events occurred during 2013:
Jan. 5 10,000 shares of authorized and unissued common stock were sold for $9 per share.
Jan. 16 10,000 shares of authorized and unissued preferred stock were sold for $105 per share.
April 1 90,000 shares of common stock were repurchased for the treasury at a price of $20 per share. Superior uses the cost method to account for treasury stock.
Sept. 1 2,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $214,000. The preferred stock currently trades on the New York Stock exchange at a price of $105 per share.
Dec. 1 35,000 shares of treasury stock are reissued at a price of $25 per share.
Calculate the number issued, and outstanding common shares as of December 31, 2013? Calculate Superior's legal capital at December 31, 2013? Thank you.
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