Question

Flagler Corporation shows a total of $660,000 in its common stock account and $1,600,000 in its paid-in capital in excess of par value - common stock account. The par value of Flagler's common stock is $8. How many shares of Flagler stock have been issued?

Answer 1

82,500

Step-by-step explanation:

Data provided in the question:

Total par value of common stocks account = $660,000

paid-in capital in excess of par value = $1,600,000

The par value of Flagler's common stock = $8

Now,

The number of shares of Flagler stock have been issued

=
`\frac{\textup{Total value of common stock account}}{\textup{par value of common stocks}}`

or

The number of shares issued of Flagler stock have been

=
`(\$660,000)/(\$8)`

or

The number of shares issued of Flagler stock have been = 82,500