The stockholders' equity section of Kimbria Shumway Corporation's balance sheet at December 31 is presented here:

\section*{Instructions}
From a review of the stockholders' equity section, answer these questions

(a) How many shares of common stock are outstanding?

(b) Assuming there is a stated value, what is the stated value of the common stock?

(c) What is the par value of the preferred stock?

(d) If the annual dividend on preferred stock is \(\$ 48,000\), what is the dividend rate on preferred stock?

(e) If dividends of \(\$ 96,000\) were in arrears on preferred stock, what would be the balance reported for retained earnings?

Transcribed Image Text:

KIMBRIA SHUMWAY CORPORATION Partial Balance Sheet Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding Common stock, no par, 750,000 shares authorized, 600,000 shares issued Total paid-in capital Retained earnings $ 600,000 1,800,000 2,400,000 1,158,000 Total paid-in capital and retained earnings 3,558,000 Less: Treasury stock (10,000 common shares) Total stockholders' equity (64,000) $3,494,000