Accounting Assignment

Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located below instructions:

• 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 attached Excel® spreadsheet and submit with your answers.

Lachlin Corporation Balance Seet

Stockholders' equity

Paid-in capital

Preferred stock, cumulative, 10,000
shares authorized, 6,000
shares issued and outstanding $ 600,000
Common stock, no par, 750,000
shares authorized, 580,00
shares issued $2,900,000
Total 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