Question - The stockholders' equity section of Leyland Corporation's balance sheet at December 31 is presented here.
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LEYLAND CORPORATION Balance Sheet (partial)
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Stockholders' equity Paid-in capital
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Preferred stock, cumulative, 9,833 shares authorized, 5,900 shares issued and outstanding
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$ 619,500
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Common stock, no par, 734,741 shares authorized, 568,200 shares issued
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2,272,800
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Total paid-in capital
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2,892,300
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Retained earnings
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1,170,000
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Total paid-in capital and retained earnings
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4,062,300
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Less: Treasury stock (6,390 common shares)
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(34,080)
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Total stockholders' equity
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$4,028,220
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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 $49,560, what is the dividend rate on preferred stock?
(e) If dividends of $73,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?