1) The stockholders equity section of Swifty Corporations balance sheet at December 31 is presented here.

Swifty Corporation Balance Sheet(Partial)
Stockholders equity
Paid-in capital
Preferred stock, cumulative, 18,000 shares authorized, 12,600 shares issued and outstanding		$ 1,512,000
Common stock, no par, 740,000 shares authorized, 540,000 shares issued		2,700,000
Total paid-in capital		4,212,000
Retained earnings		1,858,000
Total paid-in capital and retained earnings		6,070,000
Less: Treasury stock ( 9,000 common shares)		57,600
Total stockholders equity		$ 6,012,400

From a review of the stockholders equity section, answer the following 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 $ 166,320, what is the dividend rate on preferred stock?
(e)		If dividends of $ 332,640 were in arrears on preferred stock, what would be the balance reported for retained earnings?

2) Pina Colada Corp. purchased from its stockholders 5,000 shares of its own previously issued stock for $240,000. It later resold 1,500 shares for $51 per share, then 1,500 more shares for $46 per share, and finally 2,000 shares for $40 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Enter an account title to record purchase from stockholders	Enter a debit amount	Enter a credit amount
Enter an account title to record purchase from stockholders	Enter a debit amount	Enter a credit amount
(To record purchase from stockholders.)
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
(To record sales of shares at $51 per share.)
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
(To record sales of shares at $46 per share.)
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
Enter an account title to record sales of shares	Enter a debit amount	Enter a credit amount
(To record sale of shares at $40 per share.)