Multiple Choice Identify the choice that best completes the statement or answers

Question

Multiple Choice Identify the choice that best completes the statement or answers the question 1. If a company has 30,000 shares of treasury stock, 120,000 shares outstanding, and 500,000 shares authorized, how many shares are issued? a. $00,000 c. 120,000 .9000oooo Exhibit 16-2 Lowball, Inc., entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares grssparcommonstock for S15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full. Refer to Exhibit 16-2. The initial entry to record this subscription and the down payment would include a a. credit to Common Stock Subscribed for $10,000 2. credit to Additional Paid-in Capital from Subscribed Stock for $10,000 c. debit to Subscriptions Receivable:Common Stock for $30,000x d. debit to Cash for $2,000 Refer to Exhibit 16-2. Lowball received final payment (80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entries to record receipt of final payment and issuance of 1,800 shares would include a a debit to Cash for $24,000 X 3. credit to Subscriptions Receivable: Common Stock for $21,600 debit to Common Stock Subscribed for $10,000 d. credit to Common Stock for $9,000 Refer to Exhibit 16-2. Lowball received final payment (80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entry to record the default on 200 shares would include a a. debit to Common Stock Subscribed for S3.000 b. credit to Subscriptions Receivable: Common Stock for $3.000 X 4. debit to Additional Paid-in Capital on Common Stock for $2,000 d. credit to Additional Paid-in Capital from Subscribed Stock for $600 x

Explanation / Answer

Solution 1:

Issued shares are the shares which are outstanding and treasury shares.

So the numbers of issued shares is 120,000+30,000 = 150,000 shares.

Answer is b.

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