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

Answer:

82,500

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

= $\frac{\ 660,000}{\ 8}$

or

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