The corporate charter of Benjo Corporation allows the issuance of a maximum of 2,500,000 shares of P1 par value common stock. During its first three years of operation, Benjo issued 1,500,000 shares at P15 per share. It later acquired 30,000 of these shares as treasury stock for P25 per share. 1. How many shares were authorized? 2. How many shares were issued? 3. How many shares are outstanding? 4. What is the balance of the Common Stock account?

The corporate charter of Benjo Corporation allows the issuance of a maximum of 2,500,000 shares of P1 par value common stock. During its first three years of operation, Benjo issued 1,500,000 shares at P15 per share. It later acquired 30,000 of these shares as treasury stock for P25 per share. 1. How many shares were authorized? 2. How many shares were issued? 3. How many shares are outstanding? 4. What is the balance of the Common Stock account?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...

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Question

1. How many shares were authorized?

2. How many shares were issued?

3. How many shares are outstanding?

4. What is the balance of the Common Stock account?

5. What is the balance of the Treasury Stock account?

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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