The equity section of Ahab SA at December 31 is as follows. AHAB SA Statement of Financial

Question:

The equity section of Ahab SA at December 31 is as follows.
AHAB SA
Statement of Financial Position (partial)
Equity
Share capital-preference, cumulative, 10,000 shares authorized, 5,000
shares issued and outstanding.........................................................€ 300,000
Share capital-ordinary, no par, 750,000 shares authorized, 600,000
shares issued..............................................................................1,200,000
Retained earnings........................................................................1,858,000
Less: Treasury shares-ordinary (75,000 shares).......................................75,000
Total equity..............................................................................€3,283,000
Instructions
From a review of the equity section, as chief accountant, write a memo to the president of the company answering the following questions.
(a) How many ordinary shares are outstanding?
(b) Assuming there is a stated value, what is the stated value of the ordinary shares?
(c) What is the of the preference shares?
(d) If the annual on preference shares is €24,000, what is the rate on preference shares?
(e) If dividends of €48,000 were in arrears on preference shares, what would be the balance in Retained Earnings?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...