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

Image transcription text

LACHLIN CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,0[11 shapes authorized, 6,000 Shara issued and outstanding $ 600,000 Common stock, no par, 750,000 shares authorized, 530,000 shapes issued 2,900,000 Tbta] 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

... Show more

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

(a) How many shares of common stock are outstanding?

(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 $36,000, what is the dividend rate on preferred stock?

(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Answer & Explanation
Verified Solved by verified expert

ur laoreet. Nam risus ante, dapibus a molestie c

sum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lor

Unlock full access to Course Hero

Explore over 16 million step-by-step answers from our library

Subscribe to view answer
1 Attachment
stockholders equity.doc