The stockholders equity section of Flounder Corp.s balance sheet at December 31 is presented here. FLOUNDER CORP.
Question:
The stockholders’ equity section of Flounder Corp.’s balance sheet at December 31 is presented here.
FLOUNDER CORP.
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 9,333 shares authorized, 5,600 shares issued and outstanding
$ 582,400
Common stock, no par, 761,638 shares authorized, 589,000 shares issued
2,945,000
Total paid-in capital
3,527,400
Retained earnings
1,155,000
Total paid-in capital and retained earnings
4,682,400
Less: Treasury stock (6,700 common shares)
35,733
Total stockholders’ equity
$4,646,667
From a review of the stockholders’ equity section, answer the following questions.
(a) How many shares of common stock are outstanding?
Common stock outstanding
shares
(b) Assuming there is a stated value, what is the stated value of the common stock?
The stated value of the common stock
$
per share
(c) What is the par value of the preferred stock?
The par value of the preferred stock
$
per share
(d) If the annual dividend on preferred stock is $52,416, what is the dividend rate on preferred stock?
The dividend rate
%
(e) If dividends of $72,600 were in arrears on preferred stock, what would be the balance reported for retained earnings?
The Retained Earnings balance
$
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso