Asked by umarf2011
The stockholders' equity section of Lachlin Corporation's balance...
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
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?
Answered by umarf2011
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