The stockholders’ equity section of Lachlin Corporation’s balance sheet at December 31 is presented
From a review of the stockholders’ equity section, answer the following questions.
(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
LACHLIN CORPORATION Balance Sheet (partial)
Preferred stock, cumulative, 10,0[11 shapes authorized,
6,000 Shara issued and outstanding $ 600,000
Common stock, no par, 750,000 shares authorized,
530,000 shapes issued 2,900,000
Tbta] paid-in capital 3,500,000
Retained earnings 1,158,000
Total paid—in capital and retained earnings 4, 658,000
Less: Treasury stock (6,000 common shares) 32,000 Total stockholders’ equity $4,626,000