Question 4 Thestockholders\' equity section of Kay Corporation at the end of the

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Question 4

Thestockholders' equity section of Kay Corporation at the end of thecurrent year showed:

Preferredstock (7%, $60 par, 8,000 shares issued & outstanding)........      ?

Commonstock ($9 par, 62,000 shares issued, 58,750 shares outstanding)..   558,000

Paid-incapital – preferred stock.......................................     ?

Paid-incapital – common stock..........................................   806,000

Retainedearnings.......................................................  125,000

Less: Treasury stock (3,250 shares at cost)............................   <48,750>

Totalstockholders' equity..............................................     ?

Question 4

Explanation / Answer

Preferred stock $48,000 (7%,$60 par,8000 shares issued& outstanding) Common stock($9 par,62000 shares issued,58750 shares outstanding) $558,000 Additional Paid-in capital preferred stock(7% of $48000) $33,600 common stock $806,000 Total of capital $1,445,600 Retained earnings $125,000 less: Treasury stock ($48,750) Totalstockholders'equity $1,521,850

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