LEYLAND CORPORATION Balance Sheet (partial) Stockholders’ equity Paid-in capital
ID: 2454323 • Letter: L
Question
LEYLAND CORPORATION Balance Sheet (partial)
Stockholders’ equity Paid-in capital Preferred stock, cumulative, 9,000 shares authorized, 5,400 shares issued and outstanding
$ 556,200 Common stock, no par, 769,267 shares authorized, 594,900 shares issued 2,379,600
Total paid-in capital 2,935,800
Retained earnings 1,192,100
Total paid-in capital and retained earnings 4,127,900
Less: Treasury stock (5,340 common shares) (28,480 )
Total stockholders’ equity $4,099,420
b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $33,372, what is the dividend rate on preferred stock?
(e) If dividends of $75,900 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Explanation / Answer
(b)
Stated Value of the Common Stock = Total Common Stock Value/Shares Issued = 2379600/594900 = $4 per share
(c)
Par value of preferred stock = $556,200 / 5,400 = $103.
(d)
Dividend rate on preferred stock = $33,372 /5400 = $6.18 per share.
(e)
Balance reported for retained earnings = $1,192,100 - $75,900 = $1,116,200
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