Question Details

review of the stockholders’ equity section



The stockholders’ equity section of Morton Corporation at December 31 is as follows.

MORTON CORPORATION
Balance Sheet (partial)
Paid-in capital
	Preferred stock, cumulative, 10,000 shares authorized,
		5,000 shares issued and outstanding	$ 300,000
	Common Stock, no par, 750,000 shares authorized, 300,000 shares issued	  1,500,000
		Total paid-in capital	1,800,000
Retained earnings	  2,050,000
	Total paid-in capital and retained earnings	3,850,000
Less: Treasury stock (5,000 common shares)	     (64,000)
	Total stockholders' equity	$3,786,000

Instructions
From a review of the stockholders’ equity section, answer the following questions.
(a)	How many shares of common stock are outstanding?
(b)	Assuming there is a stated value, what is the stated value of the common stock?
(c)	What is the par value of the preferred stock?
(d)	If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred 	stock?
(e)	If dividends of $36,000 were in arrears on preferred stock, what would be the balance in 	Retained Earnings?




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help