Question: The stockholders’ equity section of Linton Corporation at December 31 is as follows.
LINTON CORPORATION
Balance Sheet (partial)
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized,
5,000 shares issued and outstanding $ 300,000
Common Stock, no par, 750,000 shares authorized, 300,000 shares issued 1,500,000
Total paid-in capital 1,800,000
Retained earnings 2,050,000
Total paid-in capital and retained earnings 3,850,000
Less: Treasury stock (5,000 common shares) (64,000)
Total stockholders' equity $3,786,000
Q1. How many shares of common stock are outstanding?
Q2. Assuming there is a stated value, what is the stated value of the common stock?
Q3. What is the par value of the preferred stock?
Q4. If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock?
Q5. If dividends of $36,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?