InstructionsThe shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2015, is as follows:Shareholders' EquityPreferred stock, $100 par value; authorized, 300,000 shares; issued, 33,000 shares$3,300,000Common stock, $5 par value; authorized, 2,000,000 shares; issued, 377,000 shares1,885,000Paid-in capital in excess of par-preferred96,000Paid-in capital in excess of par-common825.000Retained earnings2,920,000$9,026,000The following events occurred during 2016:Jan. 510,500 shares of authorized and unissued common stock were sold for $7 per share.1610,000 shares of authorized and unissued preferred stock were sold for $108 per share.Apг. 179,000 shares of common stock were repurchased for the treasury at a price of $21 per share. Superioruses the cost method to account for treasury stock.Sept. 13,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraisedvalue of $389,500. The preferred stock currently trades on the New York Stock Exchange at a price of$109 per share.Dec. 124,000 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.

The question is based on the concept of Financial Accounting.

Answered: The shareholders' equity section of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 81,900 shares issued) $4,095,000 Paid-In Capital in Excess of Par—Preferred Stock 155,610 Common Stock, $3 par (5,000,000 shares authorized, 1,780,000 shares issued) 5,340,000 Paid-In Capital in Excess of Par—Common Stock 1,602,000 Retained Earnings 35,256,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 493,300 shares of common stock at $7, receiving cash. Feb. 10 Issued 8,800 shares of preferred 1% stock at $60. Mar. 19 Purchased 46,700 shares of treasury common for $7 per share. May 16 Sold 18,400 shares of treasury common for $9 per share. Aug. 25 Sold 4,900 shares of treasury common for $6 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock…
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Calculate Superior’s legal capital at December 31, 2016.. the previous answer i got was wrong.
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A corporation reported the following information at December 31, 2014: 12% cumulative, nonparticipating preferred stock, $10 par, 50,000 shares authorized; callable at par value..........$500,000 Common stock, $2 par, 30,000 shares authorized..........$40,000 Paid in Capital: Preferred Stock ..........$50,000 Common Stock...........$50,000 Total Capital Stock...........$640,000 Retained Earnings..........30,000 Less: Treasury stock (500 common shares at cost).........5,000 Total Stockholders' Equity.............$665,000 How many shares of preferred stock are outstanding?
The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 240 1,680 1 1,100 1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2024, TNL Systems purchased 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026…
Sarasota Corp. has been authorized to issue 20,400 shares of $100 par value, 6%, noncumulative preferred stock and 1,140,000 shares of no-par common stock.The corporation assigned a $4 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $154,000 Paid-in Capital in Excess of Par Value—Preferred Stock 21,400 Common Stock 1,980,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,550,000 Treasury Stock (4,100 common shares) 32,800 Retained Earnings 82,600 Accumulated Other Comprehensive Income 49,400 The preferred stock was issued for $175,400 cash. All common stock issued was for cash. In November 4,100 shares of common stock were purchased for the treasury at a per share cost of $8. No dividends were declared in 2022. Prepare the stockholders’ equity section of the balance sheet at December 31, 2022. SARASOTA CORP.Partial Balance Sheetchoose…
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On January 1, 2021, the stockholders’ equity section of Jayhawk Corporation’s balance sheet showed the following Preferred stock, $100 par value, 5%, 50,000 shares authorized, 5,000 shares issued and outstanding $500,000 Additional Paid-in-Capital, Preferred Stock 100,000 Common stock, $3 par value, 500,000 shares authorized, 20,000 shares issued and outstanding 60,000 Additional Paid-in-Capital, Common Stock 250,000 Total Contributed Capital 910,000 Retained Earnings 320,000 Total Stockholders' Equity $1,230,000 During the year, 2021, the following transactions occurred: February 2 Issued 2,000 shares of common stock for $22 per share. April 15 Issued 1,000 shares of preferred stock for $125 per share. July 10 Repurchased 500 shares of common stock (treasury stock) at $20 per share. Required: Prepare journal entries to…

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