Lanier Tech
This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par, cumulative, participating preferred stock. On January 1, 2019, the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share. Net income for the year ended December 31, 2019 was $375,000.
-Refer to Lanier Tech. What is the number of the company's unissued shares of common stock at December 31, 2019?

Question

Quizplus · Accepted Answer

The company is authorized to issue 50,000 shares of common stock. On January 1, 2019, the company issued 8,000 shares of the common stock. To find the number of unissued shares of common stock at December 31, 2019, we subtract the number of issued shares from the total authorized shares:
Total authorized common stock shares = 50,000
Issued common stock shares = 8,000
Unissued common stock shares = Total authorized common stock shares - Issued common stock shares
Unissued common stock shares = 50,000 - 8,000
Unissued common stock shares = 42,000
Therefore, the number of the company's unissued shares of common stock at December 31, 2019 is 42,000.
The correct answer is d. 42,000.

Lanier Tech This Company Was Incorporated as a New Business on January