Sandhill Technologies Inc. reported the following information related to its shareholders’ equity on January 1: Common...

Sandhill Technologies Inc. reported the following information related to its shareholders’ equity on January 1:

Common shares, 1,200,000 authorized, 600,000 shares issued		$1,800,000
Contributed surplus—reacquisition of common shares		14,160
Retained earnings		714,000

During the year, the following transactions related to common shares occurred in the order listed:

1.		Issued 38,000 shares at $4.00 per share.
2.		Reacquired 10,800 shares at $3.00 per share.
3.		Issued 4,900 shares at $4.60 per share.
4.		Reacquired 18,900 shares at $4 per share.
5.		Reacquired 74,300 shares at $3 per share.

1. Calculate the number of shares authorized and issued at the end of the year.

Number of shares authorized
Number of shares issued

2. Prepare journal entries for the transactions.

3. Show how each class of shares will be presented in the shareholders’ equity section of the balance sheet at December 31.

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Expert Solution

ekkarill92 answered 1 year ago

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