The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is as follows: 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, 2019. 3. Calculate Superior’s legal capital at December 31, 2019. Shareholders' EquityPreferred stock, $100 par value; authorized, 300,000 shares; issued, 30,000 sharesCommon stock, $5 par value; authorized, 2,000,000 shares; issued, 400,000 sharesPaid-in capital in excess of par-preferredPaid-in capital in excess of par-commonRetained earnings$3,000,0002,000,00090,000850,0003,000,000$8,940,000The following events occurred during 2019:10,000 shares of authorized and unissued common stock were sold for $8 per share.10,000 shares of authorized and unissued preferred stock were sold for $109 per share.80,000 shares of common stock were repurchased for the treasury at a price of $19 per share. Superior usesthe cost method to account for treasury stock.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.25,000 shares of treasury stock are reissued at a price of $24 per share.Jan. 516Apr. 1Sept. 1Dec. 1

Shareholder's equity shows how much the is the amount invested by the owner's in the business. The…

Answered: Shareholders' Equity Preferred stock,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is as follows: 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, 2019. 3. Calculate Superior’s legal capital at December 31, 2019.

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
Paid-in capital in excess of par-preferred
Paid-in capital in excess of par-common
Retained earnings
$3,000,000
2,000,000
90,000
850,000
3,000,000
$8,940,000
The following events occurred during 2019:
10,000 shares of authorized and unissued common stock were sold for $8 per share.
10,000 shares of authorized and unissued preferred stock were sold for $109 per share.
80,000 shares of common stock were repurchased for the treasury at a price of $19 per share. Superior uses
the cost method to account for treasury stock.
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.
25,000 shares of treasury stock are reissued at a price of $24 per share.
Jan. 5
16
Apr. 1
Sept. 1
Dec. 1

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions