Problem
The stockholders' equity section of Bridgeport Corp.'s balance sheet at December 31 is presented here.
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BRIDGEPORT CORP.
Balance Sheet (partial)
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Stockholders' equity
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Paid-in capital
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Preferred stock, cumulative, 9,000 shares authorized, 5,400 shares issued and outstanding
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$ 556,200
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Common stock, no par, 756,465 shares authorized, 585,000 shares issued
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2,925,000
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Total paid-in capital
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3,481,200
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Retained earnings
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1,150,000
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Total paid-in capital and retained earnings
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4,631,200
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Less: Treasury stock (6,800 common shares)
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36,267
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Total stockholders' equity
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$4,594,933
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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 $44,496, what is the dividend rate on preferred stock?
(e) If dividends of $78,900 were in arrears on preferred stock, what would be the balance reported for retained earnings?