Question

The following data is available for Oriole Company at December 31, 2020: Common stock, par $10 (authorized 29000 shares) $232000 Treasury stock (at cost $15 per share) $975 Based on the data, how many shares of common stock are outstanding

Answer 1

Answer:

23,125 shares

Explanation:

The computation of the number of outstanding common stock shares is shown below:

= (Common stock ÷ Par value per share) - (Treasury stock ÷ cost per share)

where,

Common stock is $232,000

Par value per share is $10

Treasury stock is $975

And, the cost per share is $15

Now placing these values to the above formula

So, the number of common stock outstanding shares is

= ($232,000 ÷ $10) - ($975 ÷ $15)

= $23,200 - $65

= 23,135 shares