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Shares, Common Stock, Treasury Stock

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The corporate charter of Gordon Corporation allows the issuance of a maximum of 2,000,000 shares of $1 par value common stock. During its first three years of operation, Gordon issued 1,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $20 per share.

Based on the above information, answer the following questions:
(a) How many shares were authorized?
(b) How many shares were issued?
(c) How many shares are outstanding?
(d) What is the balance of the Common Stock account?
(e) What is the balance of the Treasury Stock account?

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Solution Summary

The solution explains calculations relating to various equity accounts

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Based on the above information, answer the following questions:
(a) How many shares were authorized?

The maximum number of shares that can issued are the autorized shares. The authorized shares are ...

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