create journal entries for each of the above transactions.
#1) The shareholders’ equity section of Superior Corporations balance sheet as of December 31,2015, is as follows
Shareholders Equity
Preferred stock, $100 par value, authorized, 300,000 shares,issued 31,000 shares ——–$3,100,000.
Common Stock, $5 par value, authorized 2,000,000 shares, issued, 405,000 shares —–2,025,000.
Paid in capital in excess of par preferred 92,000.
Paid in capital in excess of par common— 864,000.
Retained earnings 2,900,000.
$8,081,000
The following events occured during 2016.
Jan. 5 , 10,000 shares of authorized and unissued common stock were sold for $9 per share.
Jan.16, 11,500 shares of authorized and unissued perferred stock were sold for $105 per share.
Apr. 1, 79,000 shares of common stock wee repurchased for the treasury at a price of $17 per share. Superior uses the cost method in account for treasury stock.
Sept. 1, 3,500 shares of preferred stock are issued in exchange for a peace of land. The land has an appraised value of $381,500. The preferred stock currently trades on the New York Stock Exchange at a price of $107 per share.
Dec.1, 25,000 shares of treasury stock are reissued at a price of $23 per share.
Required: Prepare a journal entries for each of the above transactions.
Analysis:
Calculate the number of authorized issued, and outstanding common shares as of December 31, 2016.
Authorized common shares—————shares.
issued ————shares.
outstanding ————- shares
Calculate Superior’s legal capital at December 31, 2016.
Total legal capital $————-
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