Garman Corp has the following stockholders equity information Garmans charter authorizes the company to issue 8,000 shares of 5 preferred stock with par value of $130 and 600,000 shares of no par common stock The company issued 1,600 shares of the preferred stock at $130 per share It issued 120,000...

Garman Corp Balance Sheet partial December 31 2010 Stockholders equity Preferred stoc ...

Garman Corp. has the following stockholders equity information: Garmans charter authorizes the company to issue 8,000 shares

Question:

Garman Corp. has the following stockholders equity information: Garman’s charter authorizes the company to issue 8,000 shares of 5% preferred stock with of $130 and 600,000 shares of no-par . The company issued 1,600 shares of the preferred stock at $130 per share. It issued 120,000 shares of the for a total of $513,000. The company s retained earnings balance at the beginning of 2010 was $74,000, and net income for the year was $94,000. During 2010, Garman declared the specified on preferred and a $0.20 per-share on common. Preferred dividends for 2009 were in arrears.

Requirement
1. Prepare the stockholders equity section of Garman Corp.’s at December 31, 2010. Show the computation of all amounts. Journal entries are not required.

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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,...