How many shares of common stock are outstanding?   Assuming there is a stated value, what is the stated value of the common stock?

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEA: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity...
icon
Related questions
Question

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

 

THOMPSON CORPORATION
Balance Sheet (partial)

Stockholders' equity

 

  Paid-in capital

 

    Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding

$600,000

    Common stock, no par, 750,000 shares authorized, 570,000 shares issued

2,900,000

      Total 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

 

Instructions

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

  • How many shares of common stock are outstanding?

 

  • Assuming there is a stated value, what is the stated value of the common stock?

 

  • What is the par value of the preferred stock?

 

  • If the annual dividend on preferred stock is $42,000, what is the dividend rate on preferred stock?

 

  • If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

 

 

.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Dividends
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning