= cost $15 per

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data is available for Sheffield Service Corporation as of December 31, 2020:

- Common stock, par $10 (authorized 100,000 shares) is valued at $413,000.
- Treasury stock (at a cost of $15 per share) amounts to $54,000.

Based on the data, how many shares of common stock are outstanding?

Options:
- 41,300
- 50,000
- 37,700
- 48,200
Transcribed Image Text:The following data is available for Sheffield Service Corporation as of December 31, 2020: - Common stock, par $10 (authorized 100,000 shares) is valued at $413,000. - Treasury stock (at a cost of $15 per share) amounts to $54,000. Based on the data, how many shares of common stock are outstanding? Options: - 41,300 - 50,000 - 37,700 - 48,200
Expert Solution
Step 1

Answer :

Shares outstanding = Shares issued - Treasury stock

Shares issued = $413000 / $10 = 41300

Treasury stock = $54000/$15 = 3600

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