Question
The stockholders' equity section of Lachlin Corp's balance sheet at December 31 is presented here. Paid in capital preferred stock, cumulative, 10,000 shares authorized, 6,000
The stockholders' equity section of Lachlin Corp's balance sheet at December 31 is presented here.
Paid in capital
preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding. $6000,000
Common stock, no par, 750,000 shares authprized. 580,000 shares issued 2,900,000
580,000 shares issued ------------------
Total paid in capital 3,500,000
Retained earnings 1,158,000
--------------------
Total paid in capital and retained earnings 4,658,000
Less: Treasury stock (6,000 common shares) 32,000
---------------------
Total stockholders' equity $4,626,000
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How many shares of common stock are outstanding?
Assuming there is a stated value, what is the stated value of the common stock?
What is the par value of the preferred stock?
If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
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