the stockholders equity section of traylor corporation s balance sheet at december 3 535280

The stockholders” equity section of Traylor Corporation”s balance sheet at December 31 is presented here.

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TRAYLOR CORPORATION
Balance Sheet (partial)

Stockholders” equity

Paid-in capital

Preferred stock, cumulative, 10,000 shares authorized,

6,000 shares issued and outstanding

$ 600,000

Common stock, no par, 750,000 shares authorized,

580,000 shares issued

2,900,000

Total paid-in capital

3,500,000

Retained earnings

1,158,000

Total paid-in capital and retained earnings

4,658,000

Less: Treasury stock (6,000 common shares)

(32,000)

Total stockholders” equity

$4,626,000

Instructions

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

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

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

(c) What is the par value of the preferred stock?

(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?

(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

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