Starr Corporation's December 31, 2007 Balance Sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares authorized; 10,000 shares issued s200,000 Common stock, $10 par value, 2.000,000 shares authorized: 1.300,000 shares issued, 1.280,000 shares outstanding 13,000,000 Paid-in capital in excess of par value - preferred stock 40,000 Paid-in capital in excess of par value - common stock 18,000,000 Retained earnings 5.100,000 Treasury stock (20,000 shares) 420,000 Starr declared and paid a $50,000 cash dividend on December 15, 2007. If the company's dividends in arrears prior to that date were $16,000, Starr's common stockholders received A. $18,000. B. $38,000. C. $22,000. D. no dividend.

Starr Corporation's December 31, 2007 Balance Sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares authorized; 10,000 shares issued s200,000 Common stock, $10 par value, 2.000,000 shares authorized: 1.300,000 shares issued, 1.280,000 shares outstanding 13,000,000 Paid-in capital in excess of par value - preferred stock 40,000 Paid-in capital in excess of par value - common stock 18,000,000 Retained earnings 5.100,000 Treasury stock (20,000 shares) 420,000 Starr declared and paid a $50,000 cash dividend on December 15, 2007. If the company's dividends in arrears prior to that date were $16,000, Starr's common stockholders received A. $18,000. B. $38,000. C. $22,000. D. no dividend.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Starr Corporation's December 31, 2007 Balance Sheet showed the following:
8% preferred stock, S20 par value, cumulative, 20,000 shares
authorized; 10,000 shares
issued
$200,000
Common stock, $10 par value, 2000,000 shares authorized:
1.300,000 shares issued, 1.280,000 shares outstanding
13,000,000
Paid-in capital in excess of par value - preferred stock
40,000
Paid-in capital in excess of par value - common stock
18,000,000
Retained
earnings
5,100,000
Treasury stock (20,000 shares)
420,000
Starr declared and paid a $50,000 cash dividend on December 15, 2007. If the company's dividends in
arrears prior to that date were S16,000, Starr's common stockholders received
A.
$18,000.
В.
$38,000.
C.
$22,000.
D.
no dividend.

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