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Heep, Inc has the following information available: How many shares of common sto

ID: 2469380 • Letter: H

Question

Heep, Inc has the following information available:

How many shares of common stock are issued?

60,000

80,000

140,000

160,000

none of the above

Refer to the information above for Heep Inc.

How much did Heep receive (in cash or other assets) from issuing common stock?

$60,000

$80,000

$140,000

$160,000

none of the above

Refer to the information above for Heep Inc.

How many shares of common stock are outstanding?

160,000

140,000

80,000

78,000

none of the above

Common stock, $1 par, 100,000 shares authorized $80,000 Additional paid in capital 60,000 Retained earnings 40,000 Less: Treasury stock, 2,000 shares at cost (20,000) Total stockholders' equity $160,000

Explanation / Answer

b. Number of common shares issued are $80,000/$1 = 80,000 shares.

c. Heep received $140,000 for issuing common stock ($80,000 shares as the face value of the shares issued and $60,000 for additional paid in capital)

d. 78,000 common shares are outstanding (80,000 shares were issued and 2,000 shares were bought back as treasury stock)

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