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Help with shares issued and outstanding on stockholders' equity section...?

INFORMATION:

The stockholders' equity accounts of Neer Corporation on January 1, 2010, were as follows.

Preferred Stock (8%, $50 par, cumulative, 10,900 shares authorized) $ 397,500

Common Stock ($1 stated value, 2,086,000 shares authorized) 1,389,000

Paid-in Capital in Excess of Par Value-Preferred Stock 100,700

Paid-in Capital in Excess of Stated Value-Common Stock 1,437,600

Retained Earnings 1,772,000

Treasury Stock-Common (10,500 shares) 42,000

During 2010, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb. 1 Issued 24,410 shares of common stock for $118,700.

Apr. 14 Sold 5,530 shares of treasury stock-common for $32,820.

Sept. 3 Issued 5,100 shares of common stock for a patent valued at $35,050.

Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,940.

Dec. 31 Determined that net income for the year was $481,900.

No dividends were declared during the year.

Stockholders' equity

Paid-in capital

Capital stock

8% Preferred stock,

$ 50 par value, cumulative

10900 shares authorized,

________ shares issued and outstanding <-- how do I find that??????

please help me find the shares issued and outstanding. I'm so confused!! best answer gets 10 points!

1 Answer

Relevance
  • Don G
    Lv 7
    1 decade ago
    Favorite Answer

    If Preferred Stock at $50 = $397,500, then there must be 7,950 shares issued and outstanding.

    To determine Common shares o/s, you must subtract shares held in the treasury. So on Jan 1, Common shs. issued were 1,389,000 shares, but there were 10,500 Treasury shs, a net O/S of 1,378,500 shs.

    During 2010, Common shs. issued were 24,410 + 5,100 to bring total issued at Dec 31 of 1,418,510.

    Remember that once shares are issued, they remain so unless retired when purchased back. If purchased back and held in the Treasury, they are still issued, but not outstanding.

    Treasury shares Beg Bal of 10,500 less 5,530 shs resold plus 1,000 shs purchased = End Bal of 5,970.

    Total Common shs Issued at Dec 31 = 1,418,510, but shares outstanding = 1,412,540

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