The stockholders\' equity section of Maistyle Corporation\'sbalance sheet at Dec

Question

The stockholders' equity section of Maistyle Corporation'sbalance sheet at December 31 is presented here.

From a review of the stockholders' equity section, answer thefollowing questions. (Round all answers to 0decimal places.)

How many shares of common stock are outstanding? shares

Assuming there is a stated value, what is the stated value ofthe common stock? $ per share

What is the par value of the preferred stock? $ per share

If the annual dividend on preferred stock is $36,000, what isthe dividend rate on preferred stock? %

If dividends of $72,000 were in arrears on preferred stock, whatwould be the balance reported for retained earnings? $

Explanation / Answer

1. 592,000 common shares outstanding    (600,000 - 8,000 treasury stock) 2. $ 3 is the stated value per share .   ( 1,800,000 /600,000) 3.$ 150 is the par value of the preferred stock.   (900,000 / 6,000) 4. 4 % ( 36,000 / 900,000 * 100) 5. 1,050,000 is the retained earnings. ( 1,158,000 - 72,000)and current year dividend of 36,000 also subtracted.

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