Question

The corporate charter of Windsor, Inc. allows the issuance of a maximum of 5,000,000 shares of $1 par value common stock. During its first three years of operation, Richard issued 2,410,000 shares at $13 per share. It later acquired 90,000 of these shares as treasury stock for $23 per share.

Based on the above information, answer the following questions:

How many shares were authorized?

Authorised shares

enter a number of shares shares

  

  

How many shares were issued?

Shares issued

enter a number of shares shares

  

  

How many shares are outstanding?

Outstanding shares

enter a number of shares shares

  

  

What is the balance of the Common Stock account?

Balance of the Common Stock account

$enter a dollar amount

  

  

What is the balance of the Treasury Stock account?

Balance of the Treasury Stock account

$enter a dollar amount

  

  

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Answer 1

· Requirements asked

1	How many shares were authorized?	5,000,000	shares
2	How many shares were issued?	2,410,000	shares
3	How many shares are outstanding?	2,320,000	shares [2410000 - 90000 treasury stock]
4	What is the balance of the Common Stock account?	$2,410,000	[2410000 issued shares x $ 1 par]
5	What is the balance of the Treasury Stock account?	$2,070,000	Debit [90000 shares x $ 23]