Question

Mews Corporation has the following information reported on the balance sheet as of December 31 of the current​ year: Common​ Stock, $10 par value​ (authorized 20,000​ shares) ​$60,000 Treasury Stock​ (1,000 shares) ​$30,000 Based on the information​ above, how many shares of common stock have been​ issued? A. ​7,000 B. ​1,000 C. ​5,000 D. ​6,000

Answer 1

Answer:

Number common stock shares issued will be 5000

So option (C) will be correct answer.

Explanation:

We have given amount = $60000

Common stock par value = $10

Number of share issued $=\frac{60000}{10}=6000$

Treasury stock = 1000 shares

We have to find the number common stock shares issued.

Shares of common stock outstanding = number of shares issued - treasury issued = 6000-1000 = 5000 shares

So option (C) will be correct answer