Chapter 12 Practice Problems

Chapter 12 Practice Problems \#2 Garrett, Inc. sells video production equipment. The following selected accounts appear in the General Ledger on January 1, 2021: \begin{tabular}{ll|r} Preferred Stock, 5%$100 par value ( 200,000 shares authorized, _ shares issued) & 9,500,000 \\ \hline Paid in Capital in Excess of Par Value, Preferred Stock & 2,375,000 \\ \hline Common Stock, S10 par value (4,000,000 shares authorized, & 25,000,000 \\ \hline Paid in Capital in Excess of Par Value, Common Stock & 12,500,000 \\ \hline Retained Earnings & shares issued) & 7,850,000 \\ \hline Total Stockholders' Equity & 57,225,000 \\ \hline \end{tabular} Instructions 1) How many shares of Preferred Stock have been issued and are outstanding? 2) Calculate the total cash received for the Preferred Stock. 3) Calculate the cash received per share for the Preferred Stock. 4) Calculate the Preferred Stock dividend requirement. 5) How many shares of Common Stock have been issued and are outstanding? 6) Calculate the total cash received for the Common Stock. 7) Calculate the cash received per share for the Common Stock. 8) The company issued 50,000 additional shares of Common Stock. Calculate the total number of Common Stock shares outstanding. 9) The company purchased 35,000 shares of Treasury Stock. Calculate the total number of Common Stock shares outstanding. 10) The company declared a $.25 per share cash dividend for Common Stock; Declared the cash dividend required for Preferred Stock. Calculate the total cash dividend. 11) Prepare the journal entry for the date of declaration for the total cash dividend