Athletic Endurance Company had the following stockholders equity section on the December 31, 2010, balance sheet: Preferred

Question:

Athletic Endurance Company had the following stockholders’ equity section on the December 31, 2010, balance sheet:

Preferred stock, 6%, $120 par, cumulative ........$1,170,000

Common stock, $1.50 par value ............ 300,000

Paid-in capital in excess of par, common stock ...... 1,200,000

Retained earnings .................. 2,500,000

Total .......................$5,170,000

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 $115,000 of dividends was declared and there were no dividends in arrears, how much of the total 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... 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,...