Question

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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  • CreatedOctober 05, 2015
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