Use the incomplete Stockholders' Equity section of Box Company's balance sheet as of December 31,2017,to answer the following question. ?
$\begin{array}{lr}
\text { Common stock } \$ 7 \mathrm{par}, 100,000 \text { shares authorized } & \$ 700,000 \
\text { Additional paid-in capital—common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock ( } 2,000 \text { shares at cost) } & (16,000) \
\text { Total stockholders' equity } & 974,000
\end{array}$
How many shares of common stock are outstanding?

Question

Use the incomplete Stockholders' Equity section of Box Company's balance sheet as of December 31,2017,to answer the following question. ?
$\begin{array}{lr}
\text { Common stock } \$ 7 \mathrm{par}, 100,000 \text { shares authorized } & \$ 700,000 \
\text { Additional paid-in capital—common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock ( } 2,000 \text { shares at cost) } & (16,000) \
\text { Total stockholders' equity } & 974,000
\end{array}$
 How many shares of common stock are outstanding?

Quizplus · Accepted Answer

The total outstanding shares of common stock are calculated by dividing the total Common Stock account by the par value per share. So, the total outstanding shares of common stock are 98,000 [(Common Stock of $490,000) / (Par Value of $5 per share)]

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