The stockholders\' equity section of Ayayai Corp.\'s balance sheet at December 3

Question

The stockholders' equity section of Ayayai Corp.'s balance sheet at December 31 is presented here AYAYAI CORP Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 8,500 shares authorized, 5,100 shares issued and outstanding 510,000 1,650,000 2,160,000 1,148,000 3,308,000 26,667 $3,281,333 Common stock, no par, 711,207 shares authorized, 550,000 shares issued Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (5,000 common shares) Total stockholders' equity From a review of the stockholders' equity section, answer the following questions (a) How many shares of common stock are outstanding? Common stock outstanding shares (b) Assuming there is a stated value, what is the stated value of the common stock? The stated value of the common stock per share (c) What is the par value of the preferred stock? The par value of the preferred stock (d) If the annual dividend on preferred stock is $30,600, what is the dividend rate on preferred stock? per share The dividend rate (e) If dividends of $71,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? The Retained Earnings balance

Explanation / Answer

a) Common shares issued $ 550,000 Less: Treasury stock $    (5,000) Common shares outstanding $ 545,000 b) Stated value of common stock = value of common stock outstanding / Common shares issued Stated value of common stock = $1,650,000 / 550,000 Stated value of common stock = $3 per share c) Par value of the preferred stock = value of preferred stock outstanding / preferred shares issued Par value of the preferred stock = $510,000 / 5,100 Par value of the preferred stock = $100 per share d) Dividend rate = Preferred dividend / preferred shares issued Dividend rate = $30,600 / 5,100 Dividend rate = 6% e) Retained earnings balance = Current retained earnings - Preferred dividend Retained earnings balance = $1,148,000 - $71,000 Retained earnings balance = $1,077,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.