accounting problem 416658

The year end balance sheet of Smithfield Products includes the following stockholders’ equity section
(with certain details omitted):

Stockholders’ equity:
71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized $ 2,700,000
Common stock, $2 par value, 900,000 shares authorized 900,000
Additional paid in capital: Common stock 9,000,000
Retained earnings 2,595,000


Total stockholders’ equity $ 15,195,000





From this information, compute answers to the following questions:
a.

How many shares of preferred stock have been issued?

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Number of shares of preferred stock
b.

What is the total amount of the annual dividends paid to preferred stockholders?(Round intermediate calculations to 2 decimal places. Omit the “$” sign in your response)

Annual preferred stock dividend $
c.

How many shares of common stock are outstanding?

Number of shares of common stock

d.

What was the average issuance price per share of common stock?(Round your answers to2decimal places. Omit the “$” sign in your response)

Average issuance price $
e.

What is the amount of legal capital?(Omit the “$” sign in your response)

Legal capital $

f.

What is the total amount of paid in capital?(Omit the “$” sign in your response)

Paid in capital $
g.

What is the book value per share of common stock? (There are no dividends in arrears.)(Round your answers to2decimal places. Omit the “$” sign in your response)

Book value per share $
h.

Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the dividend declared during the year oneach shareof common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.)(Round your intermediate and final answers to2decimal places. Omit the “$” sign in your response)

Dividend per share of common stock $
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