The balance sheet of Trendline Corp. reported the following at December 31, 20X6.
|
Stockholders’ Equity |
|
|
Preferred stock, 4%, $10 par, 10,000 shares authorized and issued (redemption value, $110,000) |
$100,000 |
|
Common stock, no par, $5 stated value, 100,000 shares authorized, 50,000 shares issued |
250,000 |
|
Paid in capital in excess of par or stated value: |
|
|
Common stock |
239,500 |
|
Retained earnings |
395,000 |
|
Less: Treasury stock, common (1,000 shares) |
(8,000) |
|
Total stockholders’ equity |
$976,500 |
Required
a. Is the preferred stock cumulative or noncumulative? How can you tell?
b. What is the total amount of the annual preferred dividend?
c. How many shares of common stock are outstanding?
d. Compute the book value per share of the common stock. No preferred dividends are in arrears, and Trendline has not yet declared the 20X6 dividend.
2. Use the following accounts and related balances to prepare the classified balance sheet of Whitehall, Inc., at September 30, 20X7. Use the account format of the balance sheet.
|
Common stock, $1 par, 50,000 shares authorized, 20,000 shares issued |
20,000 |
Long term note payable |
80,000 |
|
Dividends payable |
4,000 |
Inventory |
85,000 |
|
Cash |
9,000 |
Property, plant, and equipment, net |
226,000 |
|
Accounts payable |
28,000 |
Accounts receivable, net |
23,000 |
|
Paid in capital in excess of par common |
115,000 |
Preferred stock, $3.75, no par, 10,000 shares authorized, 2,000 shares issued |
24,000 |
|
Treasury stock, common, 1,000 shares at cost |
6,000 |
Accrued liabilities |
3,000 |
|
Retained earnings |
75,000 |