Question
The stockholders equity section of Pina Colada Corp. at December 31 is as follows. Pina Colada Corp. Balance Sheet(Partial) Paid-in capital Preferred stock, cumulative, 10,000
The stockholders equity section of Pina Colada Corp. at December 31 is as follows.
| Pina Colada Corp. Balance Sheet(Partial) | |||
| Paid-in capital | |||
| Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding | $420,000 | ||
| Common stock, no par, 700,000 shares authorized, 570,000 shares issued | 1,140,000 | ||
| Total paid-in capital | 1,560,000 | ||
| Retained earnings | 1,858,000 | ||
| Total paid-in capital and retained earnings | 3,418,000 | ||
| Less: Treasury stock (12,000 common shares) | 62,400 | ||
| Total stockholders equity | $3,355,600 | ||
From a review of the stockholders equity section, as chief accountant, write a memo to the president of the company answering the following questions.
| (a) | How many shares of common stock are outstanding? | shares | |||
| (b) | Assuming there is a stated value, what is the stated value of the common stock? | $ | per share | ||
| (c) | What is the par value of the preferred stock? | $ | per share | ||
| (d) | If the annual dividend on preferred stock is $21,000, what is the dividend rate on preferred stock? | % | |||
| (e) | If dividends of $42,000 were in arrears on preferred stock, what would be the balance in Retained Earnings? |
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Conservation Easement Audit Techniques Guide
Authors: U.S. Internal Revenue Service
1st Edition
0359516998, 978-0359516995
