Flagler Corporation shows a total of $625,000 in its common stock account and $1,100,000 in its paid-in capital in excess of par value − common stock account. The par value of Flagler's common stock is $5. How many shares of Flagler stock have been issued?

Question

Quizplus · Accepted Answer

The common stock account represents the par value of the issued shares. With a par value of $5, the number of shares issued is $625,000 / $5 = 125,000 shares.

Flagler Corporation Shows a Total of $625,000 in Its Common