Exercise 11-07 The stockholders’ equity section of Bramble Corp.’s balance sheet at December 31 is presented...

Exercise 11-07 The stockholders’ equity section of Bramble Corp.’s balance sheet at December 31 is presented here. BRAMBLE CORP. Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 12,500 shares authorized, 7,500 shares issued and outstanding $ 787,500 Common stock, no par, 735,000 shares authorized, 565,000 shares issued 2,260,000 Total paid-in capital 3,047,500 Retained earnings 1,158,000 Total paid-in capital and retained earnings 4,205,500 Less: Treasury stock (6,900 common shares) 36,800 Total stockholders’ equity $4,168,700 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 $47,250, what is the dividend rate on preferred stock? The dividend rate enter a dividend rate on preferred stock in percentages % (e) If dividends of $73,800 were in arrears on preferred stock, what would be the balance reported for retained earnings? The Retained Earnings balance

Expert Solution

Stockholders' Equity

Preferred Stock		$787,500
(7500 Issued)

Common Stock		$2,260,000
(565000 issued)
Retained Earnings		$1,158,000

LESS:Treasury Stock		$36,800
(6900 shares)
Total			$4,168,700

(a)
Common Share outstanding
total share issued		565000
Less: Treasury Stock		6900
Common Share outstanding	558100

(b)
Stated Value		$4
(2260000/565000)

(c )
Par Value Preferred Stock	$ 105
(787500/7500)

(d)
Dividend Rate		6.00%
(47250/787500)*100

(e )
Retained Earnings		1158000
Less: Dividend in arrear	73800
Less:Dividend current year	47250
Balance Retained Earnings	1036950

ekkarill92 answered 3 years ago

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