At the beginning of the year 2021, Algorand Co. had 100,000 ordinary sharesauthorized and 50,000 shares issued and outstanding. The company had the followingequity transactions during 2021:January 31, declared and issued 20% share dividendsMay 1, purchased 6,000 of the shares issuedSeptember 30, reissued 3,000 treasury sharesNovember 30, declared a 3-for-1 share splitHow many shares are outstanding as of year-end?

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How many shares are outstanding as of ye ar-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

At the beginning of the year 2021, Algorand Co. had 100,000 ordinary shares
authorized and 50,000 shares issued and outstanding. The company had the following
equity transactions during 2021:
January 31, declared and issued 20% share dividends
May 1, purchased 6,000 of the shares issued
September 30, reissued 3,000 treasury shares
November 30, declared a 3-for-1 share split
How many shares are outstanding as of year-end?

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