Solved by Expert Tutors
Solved by Expert Tutors
Question

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


20170422122443screen_shot_2017_04_22_at_8.23.50_am.png

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?

20170422122443screen_shot_2017_04_22_at_8.23.50_am.png
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

Step-by-step answer

dictum vitae odio. Donec aliquet. Lorem ipsum do

gue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum 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

stockholders equity.doc
fficitur laoreet. Nam risus ante, dapibus a molest , ultrices a sus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laore nec facilisis. Pellentesque dapibus

Subscribe to view the full answer

Subject: Accounting, Business

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes