Accounting Problem
1) The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31. Common Stock - $5 par, 500,000 shares authorized $340,000 Paid-In Capital in Excess of Par-Common Stock 600,000 Preferred Stock - $100 par, 100,000 shares authorized590,000 Paid-In Capital in Excess of Par-Preferred 140,000 Retained Earnings 270,000 Treasury Stock (cost - $10 per share) 130,000
How many shares of common stock are outstanding?
2) The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31. Common Stock - $5 par, 60,000 shares issued $400,000 Paid-In Capital in Excess of Par-Common Stock 610,000 Preferred Stock - $100 par, 5,000 shares issued 520,000 Paid-In Capital in Excess of Par-Preferred 190,000 Retained Earnings 240,000 Treasury Stock (cost - $10 per share) 120,000
If net income for the year was $85,000 and a preferred stock dividend of $40,000 was paid, what was the beginning value of retained earnings?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.