Raven Corporation Is Authorized to Issue 2,000,000, Common Shares

question 19

Essay

Raven Corporation is authorized to issue 2,000,000, common shares. During its first three years of operation, Raven issued 1,200,000 shares at $ 15 per share. In 2021, Raven issued an additional 5,000 shares in return for equipment with a fair value of $ 75,000. The market price of the shares was $ 16 at the time of the sale.
Instructions
Based on the above information, answer the following questions:
a) How many shares are authorized at the end of 2021?
b) How many shares are issued at the end of 2021?
c) What is the value of the Common Shares account at the end of 2021?

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Definitions:

Labor Demand Curve

A graphical representation that shows the relationship between the quantity of labor demanded by firms and the wage rate.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a homogeneous product.

Marginal Product

The extra output generated from adding a single unit of a specific input, with all other inputs remaining unchanged.

Market Wage

Market wage is the prevailing rate of pay for a specific job in the labor market, determined by the supply and demand for labor specific to that job.