## The number of shares of authorized stock of a corporation quizlet

The number of shares authorized is equal to the number allowed by the secretary of state in the state where the company is incorporated. Corporations usually request a larger amount of shares than they plan to issue so they don't have to reapply on a frequent basis. Stewart Corp is a guitar manufacturer that produces high-end electric and acoustic guitars. Stewart is a family company and has been in business for 30 years. The corporate charter authorized Stewart to issue 50,000 shares, but there are only 30,000 shares currently issued to shareholders. Stewart owns 15,000.

Authorized stock is the total number of shares outstanding. FALSE 3. A corporation can issue both common and preferred stock. FALSE 4. Common stock always carries a preference for receiving dividends over preferred stock. FALSE 5. Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average) common stock. When a corporation is set up, it must tell the Secretary of State (and the public) the total number of shares that it is authorized to issue to its shareholders. When the corporation holds its organizational meeting after being incorporated, the directors of the new corporation will issue shares of stock to the initial shareholders, in exchange for the money or services that will become the start up capital of the corporation. The short answer: 10,000,000 shares of Common Stock. The number of shares of authorized stock to authorize at incorporation is somewhat arbitrary, but my preference is to authorize 10,000,000 shares. And this type of stock is usually ‘plain vanilla’ Common Stock and not something like dual class common stock for founders. The number of shares of issued stock equals a. outstanding shares plus treasury shares. b. unissued shares minus authorized shares. (Can't be this) c. authorized shares minus treasury shares. d. subscribed shares plus outstanding shares. 2. If a corporation has issued common stock at show more 1. Outstanding shares Formula : Shares issued – treasury shares – restricted shares = 25,800 – 5,500 – (2 x 2,000) = 16,300. Suppose, stock is currently at \$35.65. Therefore, the market capitalization of the firm is 16,300 x \$35.65 = \$581,095. Company A has a net income of \$12,500 as per the latest financials. In the stockholders' equity section, the company says that it is authorized for up to 1,000,000,000 shares, and has issued 351,468,000 of these. Based on this information, we can see that Best Buy has issued 35.1% of its authorized shares.

## A company with 100,000 authorized shares of \$4 par common stock issued 40,000 shares at \$8. Subsequently, the company declared a 5% stock dividend on a date when the market price was \$11 per share. What is the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend? a. \$8,000 b

The short answer: 10,000,000 shares of Common Stock. The number of shares of authorized stock to authorize at incorporation is somewhat arbitrary, but my preference is to authorize 10,000,000 shares. And this type of stock is usually ‘plain vanilla’ Common Stock and not something like dual class common stock for founders. The number of shares of issued stock equals a. outstanding shares plus treasury shares. b. unissued shares minus authorized shares. (Can't be this) c. authorized shares minus treasury shares. d. subscribed shares plus outstanding shares. 2. If a corporation has issued common stock at show more 1. Outstanding shares Formula : Shares issued – treasury shares – restricted shares = 25,800 – 5,500 – (2 x 2,000) = 16,300. Suppose, stock is currently at \$35.65. Therefore, the market capitalization of the firm is 16,300 x \$35.65 = \$581,095. Company A has a net income of \$12,500 as per the latest financials. In the stockholders' equity section, the company says that it is authorized for up to 1,000,000,000 shares, and has issued 351,468,000 of these. Based on this information, we can see that Best Buy has issued 35.1% of its authorized shares.

### Lantz Company issued 10000 shares of stock at a stated value of \$10/share. The total issue of stock sold for \$15/share. The journal entry to record this transaction would include a: debit to Cash for \$100000. credit to Common Stock for \$100000. credit to Common Stock for \$150000. credit to Paid-in Capital in Excess of Par Value for \$50000.

When a corporation is set up, it must tell the Secretary of State (and the public) the total number of shares that it is authorized to issue to its shareholders. When the corporation holds its organizational meeting after being incorporated, the directors of the new corporation will issue shares of stock to the initial shareholders, in exchange for the money or services that will become the start up capital of the corporation. The short answer: 10,000,000 shares of Common Stock. The number of shares of authorized stock to authorize at incorporation is somewhat arbitrary, but my preference is to authorize 10,000,000 shares. And this type of stock is usually ‘plain vanilla’ Common Stock and not something like dual class common stock for founders. The number of shares of issued stock equals a. outstanding shares plus treasury shares. b. unissued shares minus authorized shares. (Can't be this) c. authorized shares minus treasury shares. d. subscribed shares plus outstanding shares. 2. If a corporation has issued common stock at show more 1. Outstanding shares Formula : Shares issued – treasury shares – restricted shares = 25,800 – 5,500 – (2 x 2,000) = 16,300. Suppose, stock is currently at \$35.65. Therefore, the market capitalization of the firm is 16,300 x \$35.65 = \$581,095. Company A has a net income of \$12,500 as per the latest financials. In the stockholders' equity section, the company says that it is authorized for up to 1,000,000,000 shares, and has issued 351,468,000 of these. Based on this information, we can see that Best Buy has issued 35.1% of its authorized shares. There is no limit on the number of shares an S corporation can authorize, as long as the company complies with the rules of its state of incorporation. For example, an S corporation may be authorized to issue 100,000 shares, but 50 shareholders may own all of the shares. “Authorized shares” refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation. 10 to 15 million is a commonly used range (we set 10 million as default for the Cooley GO Docs Incorporation Package ).

### Lantz Company issued 10000 shares of stock at a stated value of \$10/share. The total issue of stock sold for \$15/share. The journal entry to record this transaction would include a: debit to Cash for \$100000. credit to Common Stock for \$100000. credit to Common Stock for \$150000. credit to Paid-in Capital in Excess of Par Value for \$50000.

Authorized shares, (also known as authorized stock or authorized capital stock), are defined as the maximum number of shares that a company is legally allowed to issue to investors, as per its own The number of shares authorized is equal to the number allowed by the secretary of state in the state where the company is incorporated. Corporations usually request a larger amount of shares than they plan to issue so they don't have to reapply on a frequent basis.

## Stewart Corp is a guitar manufacturer that produces high-end electric and acoustic guitars. Stewart is a family company and has been in business for 30 years. The corporate charter authorized Stewart to issue 50,000 shares, but there are only 30,000 shares currently issued to shareholders. Stewart owns 15,000.

Outstanding shares Formula : Shares issued – treasury shares – restricted shares = 25,800 – 5,500 – (2 x 2,000) = 16,300. Suppose, stock is currently at \$35.65. Therefore, the market capitalization of the firm is 16,300 x \$35.65 = \$581,095. Company A has a net income of \$12,500 as per the latest financials.

At this point, the value of the corporation and the value of the shares will be exactly the same. The number of shares of stock issued to these first shareholders may be any number up to the number of authorized shares. If more shareholders will be wanted in the future, it may be wise to issue substantially less than the total authorized number. Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. It is also usually listed in the capital accounts Authorized shares, (also known as authorized stock or authorized capital stock), are defined as the maximum number of shares that a company is legally allowed to issue to investors, as per its own The number of shares authorized is equal to the number allowed by the secretary of state in the state where the company is incorporated. Corporations usually request a larger amount of shares than they plan to issue so they don't have to reapply on a frequent basis. Stewart Corp is a guitar manufacturer that produces high-end electric and acoustic guitars. Stewart is a family company and has been in business for 30 years. The corporate charter authorized Stewart to issue 50,000 shares, but there are only 30,000 shares currently issued to shareholders. Stewart owns 15,000. Authorized stock is the total number of shares outstanding. FALSE 3. A corporation can issue both common and preferred stock. FALSE 4. Common stock always carries a preference for receiving dividends over preferred stock. FALSE 5. Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average) common stock.