The stockholders’ equity section of Bramble Corp.’s balance sheet at December 31 is presented here.

BRAMBLE CORP.
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 12,500 shares authorized, 7,500 shares issued and outstanding $ 787,500

Common stock, no par, 735,000 shares authorized, 565,000 shares issued 2,260,000
Total paid-in capital 3,047,500
Retained earnings 1,158,000
Total paid-in capital and retained earnings 4,205,500
Less: Treasury stock (6,900 common shares) 36,800
Total stockholders’ equity $4,168,700

(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 $47,250, what is the dividend rate on preferred stock?
(e) If dividends of $73,800 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Common stock outstanding is 558,100

Stated value of common stock is $4.00  per share

Par value of preferred stock is $105 per share

Dividend rate on preferred stock is 6%

The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.

Explanation:

Common stock outstanding =issued common stock -treasury stock

                                              =565,000-6,900

                                              ==558,100

Stated value of common stock=value of shares issued/shares issued

                                                   =$2,260,000/565,000

                                                    =$4.00  per share

Par value of preferred stock=value of shares issued/shares issued

                                              =$787,500/7500

                                              =$105 per share

preferred dividends=Preferred share capital *Dividend rate on preferred stock

preferred dividends is $47,250

preferred share capital is $787,500

dividend rate on preferred stock is unknown

$47,250=$787,500*Dividend rate on preferred stock

Dividend rate on preferred stock=$47,250/$787,500

                                                       =6%

The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.