E11-1 Computing Shares Outstanding [LO 11-1 The 2013 annual report for Golden Gr

Question

E11-1 Computing Shares Outstanding [LO 11-1 The 2013 annual report for Golden Grains disclosed that 1 billion shares of common stock have been authorized. At the end of 2012, 775 million shares had been issued and the number of shares in treasury stock was 98 million. During 2013, the only common share transactions were that 17 million common shares were reissued from treasury and 23 million common shares were purchased and held as treasury stock. Required: Determine the number of common shares (a) issued, (b) in treasury, and (c) outstanding at the end of 2013. (Enter your answers in millions.]) Number of Common Shares (in millions) (a) Issued Stock (b) Treasury Stock (c) Shares Outstanding

Explanation / Answer

(a) Computation of Issued Stock:

*The issuance of $17 million of Common Stock (from treasury) and the purchase of $23 million of stock (for treasury) does not affect the number of issued shares. These transactions affect treasury stock and, consequently, the number of outstanding shares of stock, as shown below.

(b) Computation of Treasury Stock:

(c) Computation of Shares Outstanding at End of 2013:

Number of Common Shares (in millions) Balance at End of 2012 775 Changes During 2013 0* Balance at End of 2013 775

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