Royal Knight Printing Company’s corporate charter allows it to sell 400,000 shares of $3 par value common stock. To date, the company has issued 75,000 shares for a total of $337,500. Last month, Royal Knight repurchased 5,000 shares for $4.75 per share.
1. If Royal Knight were to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding?
2. In addition to the shareholders’ equity given previously, Royal Knight also has $295,000 in retained earnings. Using this information, prepare the shareholders’ equity section of Royal Knight’s balance sheet.

  • CreatedSeptember 01, 2014
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