Question

The stockholders’ equity section of Concord Corporation’s balance sheet at December 31 is presented here.

CONCORD CORPORATION Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 11,300 shares authorized, 6,800 shares issued and outstanding		$ 707,200
Common stock, no par, 739,000 shares authorized, 569,000 shares issued		2,845,000
Total paid-in capital		3,552,200
Retained earnings		1,184,000
Total paid-in capital and retained earnings		4,736,200
Less: Treasury stock (7,000 common shares)		37,000
Total stockholders’ equity		$4,699,200

From a review of the stockholders’ equity section, answer the following questions.

(a) How many shares of common stock are outstanding?

Common stock outstanding

enter a number of shares shares

(b) Assuming there is a stated value, what is the stated value of the common stock?

The stated value of the common stock

$enter a common stock value per share in dollars  per share

(c) What is the par value of the preferred stock?

The par value of the preferred stock

$enter a preferred stock par value per share in dollars  per share

(d) If the annual dividend on preferred stock is $49,504, what is the dividend rate on preferred stock?

The dividend rate

enter a dividend rate on preferred stock in percentages %

(e) If dividends of $75,700 were in arrears on preferred stock, what would be the balance reported for retained earnings?

The Retained Earnings balance

$enter a Retained Earnings balance in dollars

Answer 1

a
Common stock outstanding	562000	=569000-7000
b
The stated value of the common stock	5	=2845000/569000
c
The par value of the preferred stock	104	=707200/6800
d
The dividend rate	7%	=49504/707200
e
The Retained Earnings balance	1184000