Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

============

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions