Stockholders Equity Section of the Balance Sheet

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Business Finance

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Purpose of Assignment

The purpose of this assignment is to help you become familiar with examining the stockholders' equity section of the balance sheet.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making, Ch. 11

In 200 words, answer questions a) through e) below using this partial Balance Sheet:

:

Stockholders' equity

Paid-in capital

Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding

$ 600,000

Common stock, no par, 750,000 shares authorized, 580,000 shares issued

2,900,000

Total paid-in capital

3,500,000

Retained earnings

1,158,000

Total paid-in capital and retained earnings

4,658,000

Less: Treasury stock (6,000 common shares)

32,000

Total stockholders' equity

4,626,000

  • 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 $36,000, what is the dividend rate on preferred stock?
  • e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Use the Week 4 Excel® spreadsheet and submit with your answers.


Ensure you type the provided answers in the section that says type here. Ensure you break the answers down per question and is easily known.

Unformatted Attachment Preview

Name: Tyler L. Goddard Using the partial balance sheet below, answer the following questions by putting your values in the yellow boxes below. In 200 words, explain your how you calculated your answers. Stockholders’ equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding Common stock, no par, 750,000 shares authorized, 580,000 shares issued Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (6,000 common shares) Total stockholders’ equity a) How many shares of common stock are outstanding? b) c) Assuming there is a stated value, what is the stated value of the common stock? What is the par value of the preferred stock? d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? $600.000 2.900.000 3.500.000 1.158.000 4.658.000 32.000 4.626.000 type here 627 Content How many shares of common stock are outstanding? Assuming there is a stated value, what is the stated value of the common stock? What is the par value of the preferred stock? If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? Writing Guidelines The analysis is 200 words in length. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Total Available Met Partially Met Not Met Total Earned 1 1 1 1,5 1,5 6 0 0,5 0,25 0,25 0,5 0,5 2 0 8 0 0%
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Explanation & Answer

Attached.

Name: Tyler L. Goddard

Using the partial balance sheet below, answer the following questions by putting your values in the
yellow boxes below. In 200 words, explain your how you calculated your answers.
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized,
6,000 shares issued and outstanding

$600.000

Common stock, no par, 750,000 shares authorized,
580,000 shares issued

2.900.000

Total paid-in capital
Retained earnings
Total paid-in capital and retained earnings
Less: Treasury stock (6,000 common shares)
Total stockholders’ equity
a)

How many shares of common stock are outstanding?

b)...


Anonymous
This is great! Exactly what I wanted.

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