The authorized share capital of the Alfred Cake Company is 100,000 shares. Currently 20,000 shares are issued and outstanding. The equity is currently shown in the company's books as follows:
Common stock..................................$60,000
Retained earnings................................30.000
Common equity..................................90,000
a. How many more shares can be issued without the approval of shareholders?
b. If the company issues 10,000 shares at $5 a share, show how this will appear in the company's books.