Answer:
1) Shares authorized: 210,000.
Shares issued: 142,000 shares
Shares outstanding: 135,000 shares
2) Balance in Additional paid in Capital is $710,000
3) Earning Per Share is $1.94 per share
Explanation:
1) Shares Authorized = 210,000 shares
Shares issued = Cash Collected ÷ Issue Price
= $2,130,000 ÷ $15 per share = 142,000
Shares outstanding = Shares issued - Treasury Stock
= 142,000 shares - 7,000 shares
= 135,000 shares
2) Balance in Additional paid in Capital = (Issue Price - Par Value) × Shares issued
= ($15 - $10) × 142,000 shares
= $710,000
3) Earning Per Share = Net Income ÷ Shares Outstanding
= $262,200 ÷ 135,000 shares
= $1.94 per share