The shareholders' equity section of Superior Corporation€™s balance sheet as of December 31, 2015, is as follows:

The following events occurred during 2016:
Jan. 5 10,000 shares of authorized and unissued common stock were sold for $8 per share.
16 10,000 shares of authorized and unissued preferred stock were sold for $ 109 per share.
Apr. 1 80,000 shares of common stock were repurchased for the treasury at a price of $1 9 per share. Superior uses the cost method to account for treasury stock.
Sept. 1 3,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $336,000. The preferred stock currently trades on the New York Stock Exchange at a price of $ 109 per share.
Dec. 1 25,000 shares of treasury stock are reissued at a price of $24 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 Superior€™s legal capital at December 31, 2016.
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 Superior€™s legal capital at December 31, 2016.

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Shareholders' Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 30,000 shares Common stock, $5 par value; authorized, 2,000,000 shares; issued, 400,000 shares Paidin capital in excess of par-preferred Paidin capital in excess of par-common Retained eamings $3,000,000 2,000,000 90,000 850,000 3,000,000 8,940,000