Mastery ProblemCorporations: Organization, Stock Transactions, and Dividende Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividende throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative pretened stock Number of common shares authorized 800,000 Number of common shares issued 650,000 Par value of common shares $20 Par value of cumulative preferred shares $30 Paid-in capital in excess of par-common stock $7,000,000 Pald-in capital in excess of par-preferred stock $0 Total retained earings before the stock dividend is declared $33,500,000 No treasury share have been reissued. Preferred Dividends Common Dividends Year Per Share Total 0 Per Share 0.00 Year 1 0.20 Total Cash Dividends 30,000 54,000 105,000 135,000 Year 2 Total 30,000 $4,000 51,000 45,000 0.36 0 0.00 Year 034 0.09 54,000 Year 4 0.3 0.15 90,000 Year 5 153,000 45,000 0.3 108,000 0.18 Year 6 225,000 45,000 0.3 180,000 0.5 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.'s missing Information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception Management would like you to determine some information from the data you've collected regarding its outstanding stock Fill in the following answers How many shares of common stock are outstanding? How many shares of preferred stock are outstanding? What is the preferred dividend as a percent of par? Additional Questions 1. After completing the Cash Dividends panel, answer the following question Does Pranks, Inc. have any treasury stock? How can you tell? 2. In which years has Pranks, Inc. paid cumulative preferred dividends in areas? Year 1 Previous Ne 2. In which years has Pranks, Inc. paid cumulative preferred dividends in arrears? b. Year 2 Year 3 d. Year 4 e Years 1. Year 6 Stock Dividend The company de common stock dividend on December 1, and would like you to compute the following peces of missing formation. The marietate of the common sens 526 on December 1, and is on the actual distribution date of the stock, December 31 put in the missing information in the following table, using the information siven and your work on the other panel, An autove" (tems are tortown the under content was recent al tem are after the stock dividend was declared and closing entries were recorded at the end of the year Total paid in capital before the stock dividend Total retained earnings before the stock dividend Total stockholders' equity before the stock dividend Total poid-in capital after the stock dividend Total retained earnings after the stock dividend Total stockholders' equity after the stock dividend