Karson Corp. received a charter authorizing 120,000 Ordinary Shares at $15 par value per share....
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Karson Corp. received a charter authorizing 120,000 Ordinary Shares at $15 par value per share. During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued in payment of a current operating debt of $18,600. In the first year, the net income was $142,000. During the year, dividends of $36,000 were paid to stockholders. At the end of the year, total liabilities were $82,000.
1. Compute the Share Premium.
2. Compute the Retained Earnings at the end of the calendar period.
3. Compute the outstanding shares.
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