Shown below is information relating to the shareholders' equity of Reeve Corporation as of December 31, 2009:
$\begin{array}{lr}
8 \% \text { non-cumulative preference share, } \$ 100 \text { par } & \$ 600,000 \
\text { Ordinary shares, } \$ 10 \text { par, } 500,000 \text { shares authorized, } 120,000 \text { shares issued } & 1,200,000 \
\text { and outstanding } &\
\text { Share premium: ordinary share } & 600,000 \
\text { Retained earnings (Deficit) } & (60,000)
\end{array}$

-Refer to the above data. How many preference shares are issued and outstanding?

Question

Shown below is information relating to the shareholders' equity of Reeve Corporation as of December 31, 2009:
$\begin{array}{lr}
8 \% \text { non-cumulative preference share, } \$ 100 \text { par } & \$ 600,000 \
\text { Ordinary shares, } \$ 10 \text { par, } 500,000 \text { shares authorized, } 120,000 \text { shares issued } & 1,200,000 \
\text { and outstanding } &\
\text { Share premium: ordinary share } & 600,000 \
\text { Retained earnings (Deficit) } & (60,000)
\end{array}$

-Refer to the above data. How many preference shares are issued and outstanding?

Quizplus · Accepted Answer

The data given in the table clearly shows that the company has issued 6,000 preference shares and all of them are outstanding. Therefore, the correct choice is (B).

Shown Below Is Information Relating to the Shareholders' Equity of Reeve