Allyn, Inc., has the following owners\’ equity section in its November 30, 2010, balance sheet:
14% preferred stock, $68 par value, 1,500 shares
authorized, issued,and outstanding $?
Common stock, $8 par value, 150,000 shares
authorized, ? shares issued, ? shares outstanding 240,000
Additional paid-in capital on common stock 510,000
Additional paid-in capital from treasury stock 13,000
Retained earnings 81,000
Less: Treasury stock, at cost (1,900 shares of common) (18,000)
Total stockholders\’ equity $?
(a) Calculate the amount of the total annual dividend requirement on preferred stock. (
(b) Calculate the amount that should be shown on the balance sheet for preferred stock.
(c) Calculate the number of shares of common stock that are issued and the number of shares of common stock that are outstanding.
(d) On January 1, 2010, the firm\’s balance sheet showed common stock of $200,000 and additional paid-in capital on common stock of $470,000. The only transaction affecting these accounts during 2010 was the sale of some common stock. Calculate the number of shares that were sold and the selling price per share. (Round your answers to the nearest whole number.
(e) Describe the transaction that resulted in the additional paid-in capital from treasury stock.
(f) The retained earnings balance on January 1, 2010, was $99,000. Net income for the past 11 months has been $38,000. Preferred stock dividends for all of 2010 have been declared and paid. Calculate the amount of dividends on common stock during the first 11 months of 2010.
Click here for the SOLUTION