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

 

$