Question

Fitzgerald Corporation has 56 comma 000 shares​ authorized, 42 comma 000 ​issued, and 10 comma 000 shares of treasury stock.​ ________ shares are​ outstanding, and​ ________ shares are unissued

Answer 1

Fitzgerald Corporation has 56,000 shares authorized, 42,000 issued, and 10,000 shares of treasury stock. 32,000 shares are outstanding, and 14,000 shares are unissued.

Working:

Shares outstanding = Shares issued – Treasury stock = 42,000 – 10,000 = 32,000

Shares unissued = Shares authorized – Shares issued = 56,000 – 42,000 = 14,000

Note: The unissued shares are authorized shares that have never been issued while treasury stock is issued shares that have been bought back.