Stockholders’ Equity Section of the Balance Sheet

 

Stockholders’ Equity Section of the Balance Sheet

• Due Oct 15, 5:59 PM
• Not Submitted
• POINTS 8
• Practice/Simulation/Homework/Game
• no new messages

Objectives:

• 4.4
• Instructions
• Assignment Files
• Grading

Purpose of Assignment 

The purpose of this assignment is to help you become familiar with examining the stockholders' equity section of the balance sheet. 

Assignment Steps 

Resources: Financial Accounting: Tools for Business Decision Making, Ch. 11

Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located on p. 575 of Financial Accounting: 

• How many shares of common stock are outstanding?
• Assuming there is a stated value, what is the stated value of the common stock?
• What is the par value of the preferred stock?
• If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
• If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Use the Week 4 Excel® spreadsheet and submit with your answers.

Click the Assignment Files tab to submit your assignment.

Materials

• Stockholders’ Equity Section of the Balance Sheet Grading Guide
• Week 4 Excel® Spreadsheet
• Financial Accounting, Ch. 11: Reporting and Analyzing Stockholders’ Equity

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