The following data has been collected about Keller Company's stockholders' equity accounts:
-Assuming the treasury shares were all purchased at the same price,the number of shares of treasury stock is:
A)1,150.
B)1,000.
C)575.
D)11,000.
E)21,000.

Question

The following data has been collected about Keller Company's stockholders' equity accounts: 
-Assuming the treasury shares were all purchased at the same price,the number of shares of treasury stock is:
A)1,150. 
B)1,000. 
C)575. 
D)11,000. 
E)21,000.

Quizplus · Accepted Answer

Treasury stock is a company's own stock that it has bought back from shareholders. To calculate the number of shares of treasury stock, we need to subtract the outstanding shares from the total shares issued and adjust for any shares in the treasury. 
Total shares issued = 21,000 + 1,000 = 22,000
Outstanding shares = 21,000
Treasury stock = Total shares issued - Outstanding shares = 22,000 - 21,000 = 1,000 shares.

The Following Data Has Been Collected About Keller Company's Stockholders