Question

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 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 $47,838, what is the dividend rate on preferred stock?

The dividend rate

enter a dividend rate on preferred stock in percentages %

(e) If dividends of $78,300 were in arrears on preferred stock, what would be the balance reported for retained earnings?

The Retained Earnings balance

$enter a Retained Earnings balance in dollars

Answer 1