(b) Post to the stockholders' equity accounts. (Use T-accounts.) (c) Discuss the statement presentation of the accounts. E11-4 The stockholders' equity section of Lachlin Corporation's balance sheet at Decem- ber 31 is presented here. Answer qu stockhold LACHLIN CORPORATION (LO 2, 4), Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding Common stock, no par, 750,000 shares authorized, 580,000 shares issued $ 600,000 bro 2,900,000 Total paid-in capital Retained earnings ibaonsupbsorl 3,500,000 1,158,000 Total paid-in capital and retained earnings Less: Treasury stock (6,000 common shares) Total stockholders' equity 4,658,000 32,000 $4,626,000 00 bosnonlin Instructions 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 pre- ferred stock? (e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
(b) Post to the stockholders' equity accounts. (Use T-accounts.) (c) Discuss the statement presentation of the accounts. E11-4 The stockholders' equity section of Lachlin Corporation's balance sheet at Decem- ber 31 is presented here. Answer qu stockhold LACHLIN CORPORATION (LO 2, 4), Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding Common stock, no par, 750,000 shares authorized, 580,000 shares issued $ 600,000 bro 2,900,000 Total paid-in capital Retained earnings ibaonsupbsorl 3,500,000 1,158,000 Total paid-in capital and retained earnings Less: Treasury stock (6,000 common shares) Total stockholders' equity 4,658,000 32,000 $4,626,000 00 bosnonlin Instructions 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 pre- ferred stock? (e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.1E
Related questions
Question
Transcribed Image Text:(b) Post to the stockholders' equity accounts. (Use T-accounts.)
(c) Discuss the statement presentation of the accounts.
E11-4 The stockholders' equity section of Lachlin Corporation's balance sheet at Decem-
ber 31 is presented here.
Answer qu
stockhold
LACHLIN CORPORATION
(LO 2, 4),
Balance Sheet (partial)
Stockholders' equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized,
6,000 shares issued and outstanding
Common stock, no par, 750,000 shares authorized,
580,000 shares issued
$ 600,000
bro
2,900,000
Total paid-in capital
Retained earnings
ibaonsupbsorl
3,500,000
1,158,000
Total paid-in capital and retained earnings
Less: Treasury stock (6,000 common shares)
Total stockholders' equity
4,658,000
32,000
$4,626,000
00
bosnonlin
Instructions
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 pre-
ferred stock?
(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance
reported for retained earnings?
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