Question

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

Answer 1

option (c) 50,000

Step-by-step 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