Pranks, Inc.

Pranks, Inc, Is a manufacturer of joke and novelty products for perpetrators of practical jokes, The corporation has pald several cash dividends throughout Year 6, the current year. It is also declering a storr 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 preferred stock,

Number of common shares authorized

000.000

Number of common shares issued

750,000

Par value of common shares

120

Par value of cumulative preferred shares

$30

Pald-in capital in excess of par-common stock

17,000,000

Paid-in capital in excess of par-preferred stock

10

Total retained earnings before the stock dividend is declared

$33,500,000

Hastery Prebient Cerperetienti Organieatien, Steek Yrantaetiens, and Dividente Pranka, Inc. No treasury ahare fave been reirsued. Cash Dlvidends dats you've collected regarding is oututindirn stack. nIt it the following answers. Hoe meny shares of common stock aie eututandiog? How many shares of crefersed thock are oututending? Wist is ity greferted diplservd as a percent of ENt Yek. because the aumber. of shaces issoed is roceater than the number of ohares outstanding. 2. In which years hus Pranks, Inc paid cumulative prefarres dividends in arrart? a. Year 1 b. Year 2 c. Your] a. Year 4 6. Year 5 f. Year 6 thanis =4 Froticas TCiock Mrwoin Stock Dividend 330 on the actual ditributien date of the sted, Decentar 31 . diviberd was declaved and olosing entries were recovied at the end of the year. Totat peid-n capital befsre the utock dividend trock navidesd $36 on the actusi dicerbution date of the ttock, December 31. Cpeitian Toren iny wirk Hastery Prebient Cerperetienti Organieatien, Steek Yrantaetiens, and Dividente Pranka, Inc. No treasury ahare fave been reirsued. Cash Dlvidends dats you've collected regarding is oututindirn stack. nIt it the following answers. Hoe meny shares of common stock aie eututandiog? How many shares of crefersed thock are oututending? Wist is ity greferted diplservd as a percent of ENt Yek. because the aumber. of shaces issoed is roceater than the number of ohares outstanding. 2. In which years hus Pranks, Inc paid cumulative prefarres dividends in arrart? a. Year 1 b. Year 2 c. Your] a. Year 4 6. Year 5 f. Year 6 thanis =4 Froticas TCiock Mrwoin Stock Dividend 330 on the actual ditributien date of the sted, Decentar 31 . diviberd was declaved and olosing entries were recovied at the end of the year. Totat peid-n capital befsre the utock dividend trock navidesd $36 on the actusi dicerbution date of the ttock, December 31. Cpeitian Toren iny wirk