Landmark Company This company reported the following information in the stockholders' equity section of its December 31, 2019 balance sheet: 7% Cumulative, Non-participating Preferred Stock, $100 par, 500 shares authorized, issued, and outstanding, callable at par value $ 50,000 Common Stock, $12 par, 100,000 shares authorized 600,000 Paid-in Capital in Excess of Par--Common Stock 25,000 Retained Earnings 825,000 Refer to Landmark Company. What is the number of shares of common stock issued and outstanding? a. 5,000 b. 6,000 c. 50,000 d. 100,000

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Business

Connor Mack

7 June, 05:58

Landmark Company This company reported the following information in the stockholders' equity section of its December 31, 2019 balance sheet: 7% Cumulative, Non-participating Preferred Stock, $100 par, 500 shares authorized, issued, and outstanding, callable at par value $ 50,000 Common Stock, $12 par, 100,000 shares authorized 600,000 Paid-in Capital in Excess of Par--Common Stock 25,000 Retained Earnings 825,000 Refer to Landmark Company. What is the number of shares of common stock issued and outstanding? a. 5,000 b. 6,000 c. 50,000 d. 100,000

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Answers (1)

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Gabriela Savage · Answer 1

option (c) 50,000

Explanation:

Number of shares of common stock issued and outstanding

= (Price for Common Stock Authorized) : (Market price of common stock per share)

given in the question:

Price for Common Stock Authorized = $600,000

Market price of common stock per share = $12

Therefore,

Number of shares of common stock issued and outstanding

= $600,000 : $12

= 50,000

Hence,

the correct answer is option (c) 50,000