Question
The stockholders' equity section of Lumley Corporation at December 31 is as follows: LUMLEY CORPORATION Balance Sheet (partial) Paid-in capital Preferred stock, cumulative, 10,000 shares
The stockholders' equity section of Lumley Corporation at December 31 is as follows:
LUMLEY CORPORATION
Balance Sheet (partial)
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $ 600,000
Common stock, $2 par, 750,000 shares authorized, 500,000 shares issued 1,000,000
Paid-in capital in excess of par common 200,000
Total paid-in capital 1,800,000
Retained earnings 1,858,000
Total paid-in capital and retained earnings 3,658,000
Less: Treasury stock (12,000 common shares) 64,000
Total stockholders' equity $3,594,000
Instructions:
From a review of the stockholders' equity section, as chief accountant, write a memo to the president of the company answering the following questions.
How many shares of common stock are outstanding?
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