Question

In: Accounting

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

Solutions

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

Related Solutions

Exercise 11-4 The stockholders’ equity section of Whispering Winds Corp.’s balance sheet at December 31 is...
Exercise 11-4 The stockholders’ equity section of Whispering Winds Corp.’s balance sheet at December 31 is presented here. WHISPERING WINDS CORP. Balance Sheet (partial) Stockholders’ equity    Paid-in capital       Preferred stock, cumulative, 11,167 shares authorized, 6,700 shares issued and outstanding $ 683,400       Common stock, no par, 735,776 shares authorized, 569,000 shares issued 1,707,000    Total paid-in capital 2,390,400    Retained earnings 1,155,000         Total paid-in capital and retained earnings 3,545,400    Less: Treasury stock (6,100 common shares) 32,533 Total stockholders’ equity $3,512,867 From a review...
The stockholders’ equity section of Sarasota Corp.’s balance sheet at December 31 is presented here. SARASOTA...
The stockholders’ equity section of Sarasota Corp.’s balance sheet at December 31 is presented here. SARASOTA CORP. Balance Sheet (partial) Stockholders’ equity    Paid-in capital       Preferred stock, cumulative, 10,900 shares authorized, 6,500 shares issued and outstanding $ 663,000       Common stock, no par, 734,000 shares authorized, 564,000 shares issued 1,692,000    Total paid-in capital 2,355,000    Retained earnings 1,180,000         Total paid-in capital and retained earnings 3,535,000    Less: Treasury stock (7,800 common shares) 41,600 Total stockholders’ equity $3,493,400 From a review of the stockholders’ equity...
The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders'...
The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders' equity    Paid-in capital       Common stock, $10 par value, 490,000 shares authorized;       320,000 issued and outstanding $3,200,000    Paid-in capital in excess of par 1,300,000          Total paid-in capital 4,500,000    Retained earnings 870,000          Total stockholders' equity $5,370,000 During 2020, the following stock transactions occurred: Jan. 18 Issued 88,000 shares of common stock at $22 per share. Aug. 20 Purchased 29,000 shares of Marigold Corp. common stock at...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...
Exercise 11-7 On October 31, the stockholders’ equity section of Carla Vista Co.’s balance sheet consists...
Exercise 11-7 On October 31, the stockholders’ equity section of Carla Vista Co.’s balance sheet consists of common stock $352,000 and retained earnings $398,000. Carla Vista is considering the following two courses of action: (1) Declaring a 6% stock dividend on the 88,000 $4 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $2 per share. The current market price is $16 per share. Prepare a tabular summary of the effects of the...
Chapter 11 - E11-7 The stockholders' equity section on the December 31 balance sheet of Chemfast...
Chapter 11 - E11-7 The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts:   Contributed Capital     Preferred Stock (par $20; authorized 10,000 shares, ? issued,          of which 1,000 shares are held as treasury stock) $ 98,000     Additional Paid-in Capital, Preferred 12,740     Common Stock (no-par; authorized 20,000 shares, issued and          outstanding 5,700 shares) 552,900   Retained Earnings 27,000   Treasury Stock, 1,000 Preferred shares at cost 9,350 Assume that no shares of treasury stock have been...
Problem#4 The stockholders equity section of Carey Co.'s balance sheet at December 31, 2014, was as...
Problem#4 The stockholders equity section of Carey Co.'s balance sheet at December 31, 2014, was as follows:            Common stock--$10 par (authorized 1,000,000 shares, issued and outstanding 600,000 shares)                                      $6,000,000          Paid-in capital in excess of par                         $1,500,000           Retained earnings                                             $3,250,000                                                              Total         $10,750,000 Instructions: Prepare journal entries (1, 2 and 4) and show proper disclosure (3) (stockholders equity section of b/s) to reflect the following treasury stock transactions showing how each is accounted for under the...
The stockholders' equity section of Pats Corporation's balance sheet as of December 31, 2019 is as...
The stockholders' equity section of Pats Corporation's balance sheet as of December 31, 2019 is as follows: Stockholders' Equity Common stock, no par value; authorized, 20,000,000 shares; Issued and outstanding, 4,000,000 shares                                      $32,000,000 Retained earnings                                                                              55,000,000                                                                                                                  $87,000,000 The following events occurred during 2020: Jan. 15 45,000 shares of authorized and unissued common stock sold for $8 per share.            Jan. 26 Declared a cash dividend of 12 cents per share, payable February 25 to stock-holders of record on February...
The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2018 is as...
The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2018 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 400,000 shares $2,000,000 Paid-in capital in excess of par 850,000 Retained earnings 3,000,000 $5,850,000 The following events occurred from January to August during 2019: 1. Jan. 5 10,000 shares of authorized and unissued common stock were sold for $8 per share. 2. Jan. 16 Purchase back 1,000 treasury shares at $10 per...
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’ Equity Contributed capital    Preferred stock (par $21; authorized 17,000 shares, ? issued,      of which 700 shares are held as treasury stock) $ 126,000    Common stock (no-par; authorized 24,000 shares, issued       and outstanding 9,000 shares) 801,000    Contributed capital (includes $3,000 from treasury      stock transactions) 15,000 Retained earnings 48,000 Cost of treasury stock, preferred (16,800 ) Required: 1. Calculate the number of shares of preferred stock...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT