The following data has been collected about Keller Company's stockholders' equity accounts:
$\begin{array}{ll}
\text {Common stock $ \$ 10 $ par value 20,000 shares }&\$100,000\
\text {authorized and 10,000 shares issued, 9,000 shares outstanding}&0\
\text { Paid-in capital in excess of par value, common stock } & 50,000 \
\text { Retained earnings } & 25,000 \
\text { Treasury stock } & 11,500
\end{array}$

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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:
$\begin{array}{ll}
\text {Common stock $ \$ 10 $ par value 20,000 shares }&\$100,000\
\text {authorized and 10,000 shares issued, 9,000 shares outstanding}&0\
\text { Paid-in capital in excess of par value, common stock } & 50,000 \
\text { Retained earnings } & 25,000 \
\text { Treasury stock } & 11,500
\end{array}$

-
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

The treasury stock is valued at $11,500. Since 10,000 shares were issued and 9,000 are outstanding, 1,000 shares must be in treasury. The price per share or how it relates to the par value or paid-in capital is not relevant for determining the number of treasury shares.

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