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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The
|
THOMPSON CORPORATION |
|
|
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 |
|
|
1,158,000 |
|
Total paid-in capital and retained earnings |
4,658,000 |
|
Less: |
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?
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