The equity section of Linton Corporation at December 31 is as follows. Instructions
From a review of the equity section, answer the following questions.
(a) How many ordinary shares are outstanding?
(b) Assuming there is a stated value, what is the stated value of the ordinary shares?
(c) What is the par value of the preference shares?
(d) If the annual dividend on preference shares is $10,000, what is the dividend rate on preference shares?
(e) If dividends of $36,000 were in arrears on preference shares, what would be the balance in Retained Earnings?

Question

The equity section of Linton Corporation at December 31 is as follows.  Instructions
From a review of the equity section, answer the following questions.
(a) How many ordinary shares are outstanding?
(b) Assuming there is a stated value, what is the stated value of the ordinary shares?
(c) What is the par value of the preference shares?
(d) If the annual dividend on preference shares is $10,000, what is the dividend rate on preference shares?
(e) If dividends of $36,000 were in arrears on preference shares, what would be the balance in Retained Earnings?

Quizplus · Accepted Answer

The Answer of The equity section of Linton Corporation at December 31 is as follows.  Instructions
From a review of the equity section, answer the following questions.
(a) How many ordinary shares are outstanding?
(b) Assuming there is a stated value, what is the stated value of the ordinary shares?
(c) What is the par value of the preference shares?
(d) If the annual dividend on preference shares is $10,000, what is the dividend rate on preference shares?
(e) If dividends of $36,000 were in arrears on preference shares, what would be the balance in Retained Earnings?

The Equity Section of Linton Corporation at December 31 Is