Question

The stockholders’ equity accounts of Envision Corp. include $64,500 of common stock with a par value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. What is the total number of shares outstanding for Envision Corp.?

Answer 1

Answer:

The total number of shares outstanding for Envision Corp is 124,000 shares.

Explanation:

For computing the outstanding number of shares, the following formula should be used which is shown below:

Outstanding number of shares =  Issued shares - shares of treasury stock

where,

the issues share is not given, so first, we have to compute which is shown below:

= Total amount ÷ Par value of the share

= $64,500 ÷ $0.50

= 129,000 shares

And, the treasury stock shares is 5,000

So,

Total number of shares outstanding would be

= 129,000 shares - 5,000 shares

= 124,000 shares

Hence, the total number of shares outstanding for Envision Corp is 124,000 shares.