Use the Incomplete Stockholders' Equity Section of Box Company's Balance

question 26

Multiple Choice

Use the incomplete stockholders' equity section of Box Company's balance sheet as of December 31, 2016, to answer the following question. $\begin{array}{lr}\text { Common stock, } \$ 7 \text { par, 100,000 shares authorized } & \$ 700,000 \\\text { Additional paid-in capital-common } & 160,000 \\\text { Retained earnings } & ? \\\text { Treasury stock ( } 2,000 \text { shares at cost) } &(16,000) \\\text { Total stockholders' equity } &974,000 \\\end{array}$ ? How many shares of common stock are outstanding?

• A) 100,000
• B) 98,000
• C) 78,000
• D) 68,000

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Definitions:

Lend Reserves

The practice by financial institutions of providing loans out of their reserves, often influencing the money supply in the economy.

Money Supply

All monetary resources that are accessible in an economy at a particular timeframe, including but not limited to cash, coins, and the deposits in checking and savings accounts.

U.S. Government Securities

Financial instruments issued by the U.S. Department of the Treasury, including bonds, notes, and bills, used to fund federal government activities.

Excess Reserves

Funds held by banks over and above the legally mandated reserve requirement.