Classify stock and prepare shareholders' equity section of balance sheet. (LO 1, 5) Redmon Company's corporate charter allows it to sell 200,000 shares of $1 par value com mon stock. To date, the company has issued 50,000 shares for a total of $125,000. Last month, Redmon repurchased 1,000 shares for $3 per share.
a. If Redmon were to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding?
b. In addition to the shareholders' equity given above, Redmon Company also has $350,000 in retained earnings. Using this information, prepare the shareholders' equity section of Redmon Company's balance sheet.