The stockholders’ equity section of Monty Corp.’s balance sheet at December 31 is presented here. MONTY CORP.Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $ 612,000 Common stock, no par, 739,000 shares authorized, 569,000 shares issued 2,276,000 Total paid-in capital 2,888,000 Retained earnings 1,164,000 Total paid-in capital and retained earnings 4,052,000 Less: Treasury stock (5,200 common shares) 28,000 Total stockholders’ equity $4,024,000 From a review of the stockholders’ equity section, answer the following questions.(a) How many shares of common stock are outstanding? Common stock outstanding enter a number of shares shares (b) Assuming there is a stated value, what is the stated value of the common stock? The stated value of the common stock $enter a common stock value per share in dollars per share (c) What is the par value of the preferred stock? The par value of the preferred stock $enter a preferred stock par value per share in dollars per share (d) If the annual dividend on preferred stock is $48,960, what is the dividend rate on preferred stock? The dividend rate enter a dividend rate on preferred stock in percentages % (e) If dividends of $72,700 were in arrears on preferred stock, what would be the balance reported for retained earnings? The Retained Earnings balance $enter a Retained Earnings balance in dollars

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 Monty Corp.’s balance sheet at December 31 is presented here.

MONTY CORP. Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding		$ 612,000
Common stock, no par, 739,000 shares authorized, 569,000 shares issued		2,276,000
Total paid-in capital		2,888,000
Retained earnings		1,164,000
Total paid-in capital and retained earnings		4,052,000
Less: Treasury stock (5,200 common shares)		28,000
Total stockholders’ equity		$4,024,000

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

(a) How many shares of common stock are outstanding?

Common stock outstanding

enter a number of shares shares

(b) Assuming there is a stated value, what is the stated value of the common stock?

The stated value of the common stock

$enter a common stock value per share in dollars per share

The par value of the preferred stock

$enter a preferred stock par value per share in dollars per share

(d) If the annual dividend on preferred stock is $48,960, what is the dividend rate on preferred stock?

The dividend rate

enter a dividend rate on preferred stock in percentages %

(e) If dividends of $72,700 were in arrears on preferred stock, what would be the balance reported for retained earnings?

The Retained Earnings balance

$enter a Retained Earnings balance in dollars

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