Exercise 230 (Part Level Submision) The stockholders’ equity section of Patrick Corporation’s balance sheet at December 31 is presented here: PATRICK CORPORATION Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $600,000 Common stock, no par, 750,000 shares authorized, 600,000 shares issued 6,000,000 Total paid-in capital 6,600,000 Retained earnings 1,358,000 Total paid-in capital and retained earniings 7,958,000 Less: Treasury stock (4,000 common shares) (32,000 ) Total stockholders’ equity $7,926,000 From a review of the stockholders’ equity section, answer the following questions.
How many shares of common stock are outstanding?
| Outstanding shares |  shares |
Answer = 596,000 common shares outstanding
Working notes for above calculation
in this sum we have been given following information
10,000 shares authorized, 6,000 shares issued and outstanding $600,000 Common stock
750,000 shares authorized, 600,000 shares issued 6,000,000 Total paid-in capital 6,600,000
Retained earnings 1,358,000
Total paid-in capital and retained earniings 7,958,000 Less
Brak up of paid up capital is
| Amount | |
| Stock Preefered | $ 600,000 |
| Common Stock (600,000 oustanding) | $ 6,000,000 |
| Retained earning | $ 1,358,000 |
| Total | $ 7,958,000 |
Treasury stock (4,000 common shares) (32,000 ) Total stockholders’ equity $7,926,000
1. How many shares of common stock are outstanding?
600,000 shares issued less 4,000 common shares in Treasury stock = 596,000 common shares outstanding
