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Question - Royal Knight Printing Company's corporate charter allows it to sell 400,000 shares of $3 par value common stock. To date, the company has issued 75,000 shares for a total of $337,500. Last month, Royal Knight repurchased 5,000 shares for $4.74 per share.
If Royal Knight were preparing balance sheet, how many shares would it show as authorized, issued, and outstanding?
In addition to the shareholders' equity given previously, Royal Knight also has $295,000 in retained earnings. Using this information, prepare the shareholders' equity section of Royal Knight's balance sheet.
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