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:

Acquiring

The act of obtaining or gaining possession of resources, assets, or companies.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machinery, and devices.

Customer Participation

The involvement of customers in the production process or service delivery, which can influence their perceptions of the service quality.

Design of the Service

The process of planning and organizing people, infrastructure, communication, and material components of a service in order to improve its quality and the interaction between the service provider and its customers.