Exercise 11-4
Your answer is correct.
The stockholders’ equity section of Traylor Corporation’s
balance sheet at December 31 is presented here.
TRAYLOR CORPORATION
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock,
cumulative, 11,167 shares
authorized, 6,700 shares issued and outstanding
$ 676,700
Common stock, no
par, 714,957 shares authorized, 552,900 shares
issued
2,764,500
Total paid-in capital
3,441,200
Retained earnings
1,197,600
Total paid-in capital and retained
earnings
4,638,800
Less: Treasury stock (6,540 common
shares)
(34,880
)
Total stockholders’ equity
$4,603,920
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
(d) If the annual dividend on preferred stock is $54,136, what is
the dividend rate on preferred stock?
The dividend rate
%
(e) If dividends of $78,800 were in arrears on preferred
stock, what would be the balance reported for retained
earnings?
The Retained Earnings balance
$