The stockholders' equity section of Thompson Corporation's balance sheet at December 31 is presented here. THOMPSON CORPORATIONBalance Sheet (partial)Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding$600,000 Common stock, no par, 750,000 shares authorized, 570,000 shares issued2,900,000 Total paid-in capital3,500,000 Retained earnings1,158,000 Total paid-in capital and retained earnings4,658,000 Less: Treasury stock (6,000 common shares)32,000Total stockholders' equity$4,626,000 InstructionsFrom a review of the stockholders' equity section, answer the following questions.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 $42,000, what is the dividend rate on preferred stock? If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Number of common shares outstanding = Number of common shares issued - Number of treasury shares…

Answered: The stockholders' equity section of…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

See similar textbooks

Related questions

Concept explainers

Question

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

THOMPSON CORPORATION Balance Sheet (partial)
Stockholders' equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding	$600,000
Common stock, no par, 750,000 shares authorized, 570,000 shares issued	2,900,000
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

Instructions

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

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 $42,000, what is the dividend rate on preferred stock?

If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions