Log in
Accounting
1
answer
0
watching
134
views

The stockholders’equity section of Birdman Corp.’s balance sheet at December 31 ispresented here.
Birdman Corp.
Balance Sheet (partial)
Stockholders’ equity
Paid-incapital
Preferred stock, cumulative,10,000 shares authorized, 6,000 shares issued and outstanding $ 640,000
Common stock, no par, 735,776shares authorized, 569,000 shares issued 2,400,000
Totalpaid-in capital 3,040,000
Retainedearnings 1,191,000
Total paid-incapital and retained earnings 4,231,000
Less:Treasury stock (5,200 common shares) 30,933
Total stockholders’equity $4,200,067
From a review of thestockholders’ equity section, answer the following questions:
(a) How many shares of commonstock are outstanding?
Common stock outstanding shares
(b) Assuming there is a statedvalue, what is the stated value of the common stock?
The stated value of the commonstock per share
(c) What is the par value ofthe preferred stock?
The par value of the preferredstock per share
(d) If the annual dividend onpreferred stock is $57,600, what is the dividend rate on preferredstock?
The dividend rate %
(e) If dividends of $74,800were in arrears on preferred stock, what would be the balancereported for retained earnings?
The Retained Earningsbalance

Watch
1
answer
0
watching
134
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Shown below is the stockholders’ equity section of Powell’sbalance sheet at December 31, 2010:

Stockholders’equity:

Common stock, $2 par value, 500,000 shares authorized,

?? sharesissued........................................................................ $ 500,000

Additional paid‑in capital: commonstock................................................ 1,750,000

Total paid-incapital........................................................................... $2,250,000

Retainedearnings..................................................................................... 2,400,000

Total stockholders’equity........................................................................ $4,650,000

In 2011, thefollowing events occurred:

Powell issued 2,500 shares of $2 par common stockas payment for legal services. Although Powell’s stock is nottraded on any exchange, the agreed-upon value of the legal servicesis $80,000.

Powell issued 4,500 shares of 6% cumulativepreferred stock, $100 par value, for $106 per share.

The board of directors declared a dividend of$1.25 per share on the common stock.

Powell’s net income for 2011 was $675,000.

Instructions

Complete in goodform the stockholders’ equity section of a balance sheet preparedfor Powell at December 31, 2011.

Stockholders’ equity:

6% cumulative preferred stock, $100 par value,

10,000 shares authorized, 4,500 shares issued

$

Total paid‑incapital

$

Total stockholders’ equity

Use this space to calculate endingRetained Earnings, Dec 31 (hint: remember the Retained EarningsStatement format or think about the T-account approach

Beginning retained earnings

$

Add:

Less:

Retained earnings, Dec. 31, 2011

$

Calculate the annual cash dividends required to be paid for each of the following preferred stock issues:


Required:

a. $4.75 cumulative preferred, no par value; 400,000 shares authorized, 325,000 shares issued. (The treasury stock caption of the stockholders' equity section of the balance sheet indicates that 40,600 shares of this preferred stock issue are owned by the company.

b. 5%, $50 par value preferred, 200,000 shares authorized, 172,000 shares issued, and 68,500 shares outstanding.

c. 7.4% cumulative preferred, $100 stated value, $104 liquidating value; 80,000 shares authorized, 63,200 shares issued, 57,600 shares outstanding.

Problem 8-23 Analyzing the stockholders equity section of thebalance sheet LO 8-4, 8-7

The stockholders’ equity section of the balance sheet for GatorCompany at December 31, 2014, is as follows:


Stockholders’ Equity
Paid-in capital
Preferred stock, ? par value, 6%cumulative,
250,000 sharesauthorized, 55,000 shares issued
and outstanding $550,000
Common stock, $20 stated value,300,000 shares
authorized, 55,000 sharesissued and ? outstanding 1,100,000
Paid-in capital in excess ofpar—Preferred 45,000
Paid-in capital in excess of statedvalue—Common 165,000


Total paid-in capital 1,860,000
Retained earnings 400,000
Treasury stock, 8,000 shares (40,000 )

Total stockholders’ equity $ 2,220,000

Note: The market value per share of the common stock is $40, andthe market value per share of the preferred stock is $27.

Required

a. What is the par value per share of the preferredstock?

b. What is the dividend per share on the preferred stock? (Roundyour answer to 2 decimal places.)

c. What is the number of common stock sharesoutstanding?

d.

What was the average issue price per share (price for which thestock was issued) of the common stock? (Round your answer to 2decimal places.)

f.

If Gator declared a 2-for-1 stock split on the common stock, howmany shares would be outstanding after the split? What amount wouldbe transferred from the Retained Earnings account because of thestock split? Theoretically, what would be the market price of thecommon stock immediately after the stock split?

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in