ABC, Inc. Shareholders’ Equity Paid-in capital: Common stock, 500,000 shares at

Question

ABC, Inc.

Shareholders’ Equity

Paid-in capital:

Common stock, 500,000 shares at $1.00 par

$500,000

Paid-in capital in excess of par

  600,000

Less: Treasury stock, 100,000 shares at cost

  (100,000)  

Total shareholders’ equity

$1,000,000

What are the number of shares issued (this is not asking about shares issued and outstanding)?

ABC, Inc.

Shareholders’ Equity

Paid-in capital:

Common stock, 500,000 shares at $1.00 par

$500,000

Paid-in capital in excess of par

  600,000

Less: Treasury stock, 100,000 shares at cost

  (100,000)  

Total shareholders’ equity

$1,000,000

Explanation / Answer

C.500,000 is the shares issued.

This can be found out from = amount of capital stock / par value per share issued.

=>$500,000 / $1 per share

=>500,000 shares.

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