Question

the following data has been collected about keller company's stockholders' equity accounts: common stock $10 par value 13,000 shares authorized, 6,500 shares issued, and 2,700 shares outstanding $ 65,000 paid-in capital in excess of par value, common stock 43,000 retained earnings 18,000 treasury stock 29,000 assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

Answer 1

The number of shares of treasury stock that Keller Company has is 3,800, calculated by subtracting the 2,700 shares outstanding from the 6,500 shares issued. Assuming all treasury shares were bought at the same price, the estimated price per share is $7.63, based on the total treasury stock value of $29,000.

Step-by-step explanation:

To determine the number of shares of treasury stock that Keller Company has, we need to subtract the number of shares outstanding from the number of shares issued. Keller Company has issued 6,500 shares and has 2,700 shares outstanding. This means the number of shares of treasury stock is the difference between these two numbers.

Shares of treasury stock = Shares issued - Shares outstanding
Shares of treasury stock = 6,500 shares - 2,700 shares
Shares of treasury stock = 3,800 shares

As for the value of the treasury stock, we are told that it amounts to $29,000. If all treasury shares were purchased at the same price, we can calculate the price per share by dividing the total value of the treasury stock by the number of treasury shares:

Price per share of treasury stock = Total value of treasury stock / Number of treasury shares
Price per share of treasury stock = $29,000 / 3,800 shares
Price per share of treasury stock = $7.63 (approximately)

Therefore, Keller Company has 3,800 shares of treasury stock, purchased at an approximate price of $7.63 per share.