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s Upen Assignment ALCULATOR ? SC ASSIGNMENT RESOURCES Exercise 11-4 The stockhol

ID: 2511536 • Letter: S

Question

s Upen Assignment ALCULATOR ? SC ASSIGNMENT RESOURCES Exercise 11-4 The stockholders' equity section of Pina Colada Corp.s balance sheet at December 31 is presented here. 11-10 PINA COLADA CORP Stockh equity Review Resul Study Obiective Preferred stock, cumulative, 10,333 shares authorized, 6,200 shares issued and outstanding Common stock, no par, 742,241 shares authorized, 574,000 shares issued $ 620,000 1,722,000 2,342,000 1,175,000 3,517,000 42,133 $3,474,867 Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (7,900 common shares) Total stockholders equity From a review of the stockholders' equity section, answer the following questions (a) How many shares of common stock are outstanding? Common stock outstanding (b) A The stated value of the c shares g there is a stated value, what is the stated value of the common stock? stock s per share 0?

Explanation / Answer

Answer of Part a:

Common Stock Outstanding = 574,000 – 7,900
Common Stock Outstanding = 566,100 shares

Answer of Part b:

Stated value of the Common Stock = $1,722,000 / 574,000
Stated Value of the Common Stock = $3 per share

Answer of Part c:

Par value of Preferred stock = Preferred stock capital / No. of shares
Par value of Preferred Stock = $620,000 / 6,200
Par value of Preferred Stock = $100 per share

Answer of Part d:

Dividend Rate = $37,200 / 6,200
Dividend Rate = 6%

Answer of Part e:

Retained Earnings Balance= Retained Earning – Dividends in arrears
Retained Earnings Balance = $1,175,000 - $71,300
Retained Earnings Balance = $1,103,700