The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 18,000 shares authorized and 9,000 shares issued, 2,200 shares outstanding $90,000 Paid-in capital in excess of par value, common stock 48,000 Retained earnings 23,000 Treasury stock 24,860 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is: Multiple Choice 6,800. 90,000. 23,000. 48,000. 18,000.

Question

Antoine Hill

Business

3 January, 20:49

The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 18,000 shares authorized and 9,000 shares issued, 2,200 shares outstanding $90,000 Paid-in capital in excess of par value, common stock 48,000 Retained earnings 23,000 Treasury stock 24,860 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is: Multiple Choice 6,800. 90,000. 23,000. 48,000. 18,000.

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Answers (1)

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Seth Sherman · Answer 1

The multiple choices are:

6,800.

23,000.

10.

90,000.

48,000.

The correct option is the first one, 6,800 shares

Explanation:

The treasury stocks are stocks repurchased from investors by the company. The treasury stocks were repurchased through a process known share buyback, in other words, the company buying back its own shares from stockholders.

The formula for number of treasury stock=shares issued - shares outstanding

9,000 shares have been issued thus far

shares outstanding out of the 9,000 shares issued are 2,200

number of treasury stock = 9,000-2,200=6,800