Comprehensive The shareholders\' equity section of Superior Corporation\'s balan

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Comprehensive

The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2012, is as follows:

20,000 shares of treasury stock are reissued at a price of $20 per share

2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2013.

Shareholders’ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 30,000 shares $3,000,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 400,000 shares 2,000,000 Paid-in capital in excess of par—preferred 90,000 Paid-in capital in excess of par—common 850,000 Retained earnings 4,000,000 The following events occurred during 2013: Jan. 5 50,000 shares of authorized and unissued common stock were sold for $8 per share. Jan. 16 50,000 shares of authorized and unissued preferred stock were sold for $106 per share. April 1 40,000 shares of common stock were repurchased for the treasury at a price of $15 per share. Superior uses the cost method to account for treasury stock. Sept. 1 5,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $537,000. The preferred stock currently trades on the New York Stock exchange at a price of $106 per share. Dec. 1

20,000 shares of treasury stock are reissued at a price of $20 per share

2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2013.

Authorized common shares:   shares Issued shares:   shares Outstanding shares:   shares $9,940,000

Explanation / Answer

2. The number of authorized, issued, and outstanding common shares as of December 31, 2013:

Authorized common shares: 2,000,000 shares , $5 Par Value , Total Value $10,000,000

Issued shares: 400000 + 50000 = 450,000 shares , $5 par value, Total Value $2250000

Outstanding shares: 400,000 + 50000 - 40000 + 20000= 430,000 shares, $5 par value, Total Value $2150000

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