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The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented here. Pina Colada Corp. Balance Sheet(Partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding $840,000 Common stock, no par, 700,000 shares authorized, 570,000 shares issued 2,850,000 Total paid-in capital 3,690,000 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (12,000 common shares) Total stockholders' equity 1,858,000 5,548,000 62,400 $5,485,600 From a review of the stockholders' equity section, answer the following questions. shares $ per share (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? SA (c) What is the par value of the preferred stock? $ (d) If the annual dividend on preferred stock is $42,000, what is the dividend rate on preferred stock? (e) If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? $ 4 % per share

The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented here. Pina Colada Corp. Balance Sheet(Partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding $840,000 Common stock, no par, 700,000 shares authorized, 570,000 shares issued 2,850,000 Total paid-in capital 3,690,000 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (12,000 common shares) Total stockholders' equity 1,858,000 5,548,000 62,400 $5,485,600 From a review of the stockholders' equity section, answer the following questions. shares $ per share (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? SA (c) What is the par value of the preferred stock? $ (d) If the annual dividend on preferred stock is $42,000, what is the dividend rate on preferred stock? (e) If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? $ 4 % per share

FINANCIAL ACCOUNTING
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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The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented here. Pina Colada Corp. Balance Sheet(Partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding $840,000 Common stock, no par, 700,000 shares authorized, 570,000 shares issued 2,850,000 Total paid-in capital 3,690,000 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (12,000 common shares) Total stockholders' equity 1,858,000 5,548,000 62,400 $5,485,600 From a review of the stockholders' equity section, answer the following questions. shares $ per share (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? SA (c) What is the par value of the preferred stock? $ (d) If the annual dividend on preferred stock is $42,000, what is the dividend rate on preferred stock? (e) If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? $ 4 % per share
Transcribed Image Text:The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented here. Pina Colada Corp. Balance Sheet(Partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding $840,000 Common stock, no par, 700,000 shares authorized, 570,000 shares issued 2,850,000 Total paid-in capital 3,690,000 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (12,000 common shares) Total stockholders' equity 1,858,000 5,548,000 62,400 $5,485,600 From a review of the stockholders' equity section, answer the following questions. shares $ per share (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? SA (c) What is the par value of the preferred stock? $ (d) If the annual dividend on preferred stock is $42,000, what is the dividend rate on preferred stock? (e) If dividends of $84,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? $ 4 % per share
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