Frozen Entre Corporation had the following stockholders equity section on the June 30, 2011, balance sheet: Preferred

Question:

Frozen Entrée Corporation had the following stockholders’ equity section on the June 30, 2011, balance sheet:

Preferred stock, $125 par, 8% cumulative .......$1,112,500

Common stock, $3 par value ............ 900,000

Paid-in capital in excess of par, common stock .... 1,500,000

Retained earnings ................ 3,115,000

Total .....................$6,627,500

1. How many shares of common stock are classified as issued?

2. How many shares of common stock are outstanding?

3. How many shares of preferred stock are outstanding?

4. What was the average selling price of a share of common stock?

5. If $145,000 of dividends was declared and there were $15,000 dividends in arrears at that time, how much of the dividend would go to the common shareholders?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...