Exercise 114 The stockholders equity section of Bramble Corp

Exercise 11-4 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 $556,500 1,728,000 2,284,500 1,152,000 3,436,500 26,667 $3,409,833 Preferred stock, cumulative, 8,833 shares authorized, 5,300 shares issued and outstanding Common stock, no par, 744,827 shares authorized, 576,000 shares issued Total paid-in capital Retained earning:s Total paid-in capital and retained earnings Less: Treasury stock (5,000 common shares) Total stockholders\' equity From a review of the stockholders\' equity section, answer the following questions. (a) How many shares of common stock are outstanding? Common stock outstanding shares (b) Assuming there is a stated value, what is the stated value of the common stock? The stated value of the common stock per share (c) What is the par value of the preferred stock? The par value of the preferred stock per share

Solution

Rreq a: Common Stock Outstanding: Common Stock issued 576000 Less: Held in Treasury Stock 5000 Common Stock Outstanding: 571000 Req b: Paid in capital of Common Stock 1728000 Divide: Number of Shares issued 576000 Stated Value per shares 3 Req c: paid in capital of Preferred Stock 556500 Divide: Number of Preferred Stock issued 5300 Par value per share 105 Req d: Annual Dividend on preferred Stock 44520 Divide: Total Par value of preferred Stock 556500 Dividend rate of preferred Stock 8% Req e: Retained earnings balance 1152000 There will not be any effect on balance of Retained earnings for arrears in Preferred Dividend.