The following information pertains to JAE Corp. at January 1, 2018:

Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding $20,000
Paid-in capital in excess of par, common stock 15,000
Retained earnings 82,000

JAE Corp. completed the following transactions during 2018:
Issued 3,000 shares of $10 par common stock for $25 per share.
Repurchased 500 shares of its own common stock for $26 per share.
Resold 200 shares of treasury stock for $30 per share.

Required:
(a) How many shares of common stock were outstanding at the end of the period?
(b) How many shares of common stock had been issued at the end of the period?

Question

contestada

Respuesta :

subhashmanglia1 subhashmanglia1 · Answer 1 · 2020-03-06T11:48:49+01:00

Answer:

Issued shares =5000

Outstanding shares = 4700

Explanation:

Jan-1 Issued shares = 2000 shares

During year 3000 shares were issued.

a.) Outstanding shares =?

we know that Outstanding shares = issued stock -repurchased shares- treasury stock

= 2000+3000-500+200

= 4700 shares.

b.) Shares of common stock issued=?

Number of issued shares = 2000+3000 = 5000 shares.

Number of outstanding shares will always be less than issued shares.

anthougo anthougo · Answer 2 · 2021-11-23T15:58:35+01:00

a) At the end of 2018, JAE Corporation has 4,700 shares of Common Stock outstanding.

b) At the end of 2018, JAE Corporation has issued 2,700 shares (3,000 - 500 + 200).

Data and Calculations:

Authorized shares:

20,000 shares, Common stock at $10 par

Issued and Outstanding, 2,000 shares at $10 par = $20,000

Additional Paid-in Capital = $15,000

Retained Earnings = $82,000

Transactions in 2018:

Issuance of 3,000 shares

Treasury stock = 500 shares

Resale of treasury stock = 200 shares

Outstanding shares = 4,700 shares (2,000 + 3,000 - 500 + 200)

Learn more: https://brainly.com/question/7520008