Simon Corp's $1 par value, common stock was selling for $20 per share. Simon Corp's owners' equity accounts were as follows:
$\begin{array}{lr}
\text { Common stock } & \$ 800,000 \
\text { Additional paid-in capital } & 200,000 \
\text { Retained earnings } & 400,000
\end{array}$

How many shares of common stock have been issued?

Question

Simon Corp's $1 par value, common stock was selling for $20 per share. Simon Corp's owners' equity accounts were as follows:
$\begin{array}{lr}
\text { Common stock } & \$ 800,000 \
\text { Additional paid-in capital } & 200,000 \
\text { Retained earnings } & 400,000
\end{array}$

How many shares of common stock have been issued?

Quizplus · Accepted Answer

The common stock account represents the par value of the shares issued. With a $1 par value and $800,000 in the common stock account, 800,000 shares have been issued.

Simon Corp's $1 Par Value, Common Stock Was Selling for $20