In: Accounting
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
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 | |||