Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
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If Peartree resold 1,000 shares of treasury stock for $24 per share, what amounts would be shown for number of shares issued and outstanding?

Question

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
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If Peartree resold 1,000 shares of treasury stock for $24 per share, what amounts would be shown for number of shares issued and outstanding?

Quizplus · Accepted Answer

The number of shares issued remains the same at 100,000 because reselling treasury stock does not change the issued shares. The outstanding shares increase by 1,000 (from 95,000 to 96,000) because these shares are no longer held as treasury stock.

Please Refer to the Following Information for Peartree Company