Question

he following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 30,000 shares authorized and 15,000 shares issued, 2,000 shares outstanding $150,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 35,000 Treasury stock 25,000 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

Answer 1

Answer:

13,000 shares

Explanation:

data provided for computing the number of shares of treasury stock is here below:-

Issued Share = 15,000

Outstanding Shares = 2,000

The computation of the number of shares of treasury stock is shown below:-

Number of shares of treasury stock = Issued Share - Outstanding Shares

= 15,000 - 2,000

= 13,000 shares

Therefore for computing the number of shares of treasury stock we simply deduct the outstanding share from issued shares.