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Tess Corp. had 10,000 shares of $100 par, 8% preferred stock and 50,000 shares of $10 par common stock outstanding at December 31st, 2020. Assume
Tess Corp. had 10,000 shares of $100 par, 8% preferred stock and 50,000 shares of $10 par common stock outstanding at December 31st, 2020. Assume the preferred stock is cumulative. If dividends were last paid in 2017, what are the dividends in arrears that should be reported in the 2020 financial statements? Where will this be reported? How would your answer change if the dividends were not cumulative? b) Assume that the preferred stock was issued for $107 per share, and that the common stock was issued for $15 per share. What Tess' balance in APIC
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