Secure |https://phoenix.vitalsource.com/*/books/9781119228301/cfi/6/401/4/134/2@00 E11-4 The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here. LACHLIN CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized $ 600,000 6,000 shares issued and outstanding Com mon stock, no par, 750,000 shares authorized, 2,900,000 3,500,000 1,158,000 4,658,000 32,000 $4,626,000- 580,000 shares issued Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (6,000 common shares) Total stockholders' equity Instructions 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 $36,000, what is the dividend rate on preferred stock? (e) If dividends of $72,00o were in arrears on preferred stock, what would be the balance reported for retained earnings? Prepare correct entries for capital stock transactions. (LO'2), AN E11-5 Mesa Corporation recently hired a new accountant with extensive experience in accounting for partnerships. unahla to reviow what he had laarnaed aarliar ahont or Because of thep moration accounting Dnrine tha first month he made the follotuing entries for 575 Financial Accounting: Tools for Business Decision Making eek 4