Use the incomplete stockholders' equity section of Box Company's balance sheet as of December 31, 2016, to answer the following question. $\begin{array}{lr}
\text { Common stock, } \$ 7 \text { par, 100,000 shares authorized } & \$ 700,000 \
\text { Additional paid-in capital-common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock ( } 2,000 \text { shares at cost) } &(16,000) \
\text { Total stockholders' equity } &974,000 \
\end{array}$ ? How many shares of common stock are outstanding?

Question

Quizplus · Accepted Answer

The common stock value is $700,000 with a par value of $7 per share, indicating 100,000 shares have been issued ($700,000 / $7 per share). With 2,000 shares held as treasury stock, the outstanding shares are 100,000 - 2,000 = 98,000 shares.

Use the Incomplete Stockholders' Equity Section of Box Company's Balance