3. The maximum number of shares a company can issue, indicated by the corporation's state charter, is referred to as 4. The Additional Paid-in capital account is this type of account Problem: Argo Company is authorized to issue 100,000 shares of $2 par value common stock. On January 1, the company issues 5,000 shares of common stock when the market price was $3 per share. On January 5, the company issued 30,000 shares in exchange for land with a market value of $75,000. On January 10, the company issues 200 shares of its 10%, $5 par value preferred stock. The company is authorized to issue 1,000 shares of its preferred stock. Prepare the journal entries. Prepare the equity section of the company's balance sheet at Jan. 31. Retained earnings is $150,000