The following information pertains to MGM Corp. at January 1, 2013:Common stock, $10 par, 20,000 shares authorized,
1,000 shares issued and outstanding ........... $10,000
Paid-in capital in excess of par, common stock ....... 15,000
Retained earnings ................. 82,000
MGM Corp. completed the following transactions during 2013:
1. Issued 3,000 shares of $10 par common stock for $35 per share.
2. Repurchased 500 shares of its own common stock for $38 per share.
3. Resold 200 shares of treasury stock for $40 per share.
Required:
a. How many shares of common stock were outstanding at the end of the period?
b. How many shares of common stock had been issued at the end of the period?
c. Prepare journal entries for these transactions and post them to T-accounts.
d. Prepare the stockholders equity section of the balance sheet reflecting these transactions. Include the number of shares authorized, issued, and outstanding in the description of the common stock.