Accounting for managers MBA courses

Q4.pdf

11/21/2020 Exercise 8-15

https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 1/1

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Exercise 8-15 The stockholders’ equity section of Novak Corp.’s balance sheet at December 31 is presented here.

NOVAK CORP. Balance Sheet (partial)

Stockholders’ equity

Paid-in capital

Preferred stock, cumulative, 10,167 shares authorized, 6,100 shares issued and outstanding $616,100

Common stock, no par, 755,172 shares authorized, 584,000 shares issued 2,336,000

Total paid-in capital 2,952,100

Retained earnings 1,168,000

Total paid-in capital and retained earnings 4,120,100

Less: Treasury stock (5,700 common shares) 30,400

Total stockholders’ equity $4,089,700

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

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

Common stock outstanding shares

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

The stated value of the common stock $ per share

The par value of the preferred stock $ per share

(d) If the annual dividend on preferred stock is $36,966, what is the dividend rate on preferred stock?

The dividend rate %

(e) If dividends of $73,900 were in arrears on preferred stock, what would be the balance reported for retained earnings?

The Retained Earnings balance $