Cartier,Inc.'s corporate charter authorizes it to sell 1 million shares of $0.50 par value common stock.As of December 31,2011,the company had sold 500,000 shares for $4 each.Cartier has 20,000 shares of treasury stock that cost $100,000.On the December 31,2011 balance sheet,the number of shares issued is ________ shares.

Question

Quizplus · Accepted Answer

The number of shares issued is the total number of shares sold plus the shares of treasury stock, which have been taken out of circulation. Therefore, the number of shares issued is 500,000 (shares sold) + 0 (shares in treasury stock) = 500,000 shares.