The stockholders' equity section of Patrick Corporation's balance sheet at December 31 is presented here: PATRICK CORPORATION

Question:

The stockholders' equity section of Patrick Corporation's balance sheet at December 31 is presented here:

PATRICK CORPORATIONBalance Sheet (partial)Stockholders' equity

Paid-in capital

Preferred stock, cumulative,.....................................10,000

shares authorized,..................................6,000 shares issuedand outstanding................................................$ 300,000Common stock, no par,.................................750,000 sharesauthorized, 600,000 shares issued..........................3,000,000Total paid-in capital...........................................3,300,000Retained earnings.............................................1,358,000Total paid-in capital and retained earnings................4,658,000Less: Treasury stock (6,000 common shares).............. (32,000) Total stockholders' equity..................................$4,626,000

InstructionsFrom a review of the stockholders' equity section, answer the following questions.(a) How many shares of common stock are outstanding? (show all work)(b) Assuming there is a stated value, what is the stated value of the common stock? (show all work)(c) What is the par value of the preferred stock? (show all work)(d) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock? (show all work)(e) If dividends of $36,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? (show all work)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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,...