The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2012, is as follows:
| Shareholders' Equity |
| Preferred stock, $100 par value; authorized, 150,000 shares; issued, 15,000 shares |
$1,500,000 |
| Common stock, $5 par value; authorized, 1,000,000 shares; issued, 200,000 shares |
1,000,000 |
| Paid-in capital in excess of par-preferred |
60,000 |
| Paid-in capital in excess of par-common |
425,000 |
| Retained earnings |
3,300,000 |
| |
$6,285,000 |
The following events occurred during 2013:
Jan. 5 50,000 shares of authorized and unissued common stock were sold for $9 per share.
Jan. 16 50,000 shares of authorized and unissued preferred stock were sold for $110 per share.
April 1 90,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock.
Sept. 1 2,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $224,000. The preferred stock currently trades on the New York Stock exchange at a price of $110 per share.
Dec. 1 35,000 shares of treasury stock are reissued at a price of $21 per share