The stockholders’ equity section of Riverbed Corp’s balance sheet at December 31 is presented here. RIVERBED CORP Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 10,700 shares authorized, 6,400 shares issued and outstanding $ 640,000 Common stock, no par, 770,000 shares authorized, 600,000 shares issued 2,400,000 Total paid-in capital 3,040,000 Retained earnings 1,191,000 Total paid-in capital and retained earnings 4,231,000 Less: Treasury stock (5,800 common shares) 31,000 Total stockholders’ equity $4,200,000 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 $57,600, what is the dividend rate on preferred stock? The dividend rate enter a dividend rate on preferred stock in percentages % (e) If dividends of $74,800 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 Riverbed Corp’s balance sheet at December 31 is presented here.

RIVERBED CORP Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 10,700 shares authorized, 6,400 shares issued and outstanding		$ 640,000
Common stock, no par, 770,000 shares authorized, 600,000 shares issued		2,400,000
Total paid-in capital		3,040,000
Retained earnings		1,191,000
Total paid-in capital and retained earnings		4,231,000
Less: Treasury stock (5,800 common shares)		31,000
Total stockholders’ equity		$4,200,000

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 $57,600, what is the dividend rate on preferred stock?

The dividend rate

enter a dividend rate on preferred stock in percentages %

(e) If dividends of $74,800 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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