Lanier Tech This company was incorporated as a new business on January 1,2015.The company is authorized to issue 50,000 shares of $5 par common stock and 10,000 shares of 6%,$10 par,cumulative,participating preferred stock.On January 1,2015,the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share.Net income for the year ended December 31,2015 was $375,000.
-Refer to Lanier Tech.What is the number of the company's unissued shares of common stock at December 31,2015?

Question

Quizplus · Accepted Answer

The company is authorized to issue 50,000 shares of common stock. Since it issued 8,000 shares, the number of unissued shares is 50,000 - 8,000 = 42,000.

Lanier Tech This Company Was Incorporated as a New Business