Textbook Problem

Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, $100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows:

Part a. A shareholder has raised the following questions:

1. 1. What is the legal capital of the corporation?
2. 2. At what average price per share has the preferred stock been issued?
3. 3. How many shares of common stock have been issued (the common stock has been issued at an average price of $23 per share)?

Part b. The company engaged in the following transactions in 2019:

Required:

1. 1. Answer the questions in Part a.
2. 2. Prepare journal entries to record the transactions in Part b.
3. 3. Prepare the Contributed Capital section of Young’s December 31, 2016, balance sheet.