The corporate charter of Torres Corporation allows the issuance of a maximum of 3,000,000

shares of $1 par value common stock. During its first three years of operation, Torres issued

1,560,000 shares at $15 per share. It later acquired 60,000 of these shares as treasury stock for

$25 per share.

Instructions

Based on the above information, answer the following questions:

(a) How many shares were authorized?

(b) How many shares were issued?

(c) How many shares are outstanding?

(a) What is the balance of the Common Stock account?

(e) What is the balance of the Treasury Stock account?

Explain in words how you concluded each of the following questions