FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
6 The
THOMPSON CORPORATION |
|
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 |
|
1,158,000 |
Total paid-in capital and retained earnings |
4,658,000 |
Less: |
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?
.
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