The stockholders equity section of MaiStyle Corporations balance sheet at December 31 is presented here.

Stockholders equity Paid-in capital

MAISTYLE CORPORATION Balance Sheet (partial)

Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding

Common stock, no par, 750,000 shares authorized, 600,000 shares issued

Total paid-in capital Retained earnings

Total paid-in capital and retained earnings Less: Treasury stock (8,000 common shares)

Total stockholders equity

Instructions

$ 900,000

1,800,000

2,700,000 1,158,000

3,858,000 (32,000)

$3,826,000

From a review of the stockholders equity section, answer the following questions.

1. (a) How many shares of common stock are outstanding?
2. (b) Assuming there is a stated value, what is the stated value of the common stock?
3. (c) What is the par value of the preferred stock?
4. (d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
5. (e) If dividends of $72,000 were in arrears on preferred stock, what would be the bal- ance reported for retained earnings?