Q47PGB_1 - Horngren'S Financial And Managerial Accounting

Question

Question: Identifying sources of equity, stock issuance, and dividends

Tillman Comfort Specialists, Inc. reported the following stockholders’ equity on its balance sheet at June 30, 2018:

Preferred Stock—5%, ? Par Value; 625,000 shares 

 authorized, 325,000 shares issued and outstanding

Paid-In Capital:

\( 1,300,000

1,350,000

Stockholders’ Equity

Paid-In Capital in Excess of Par—Common 2,600,000

Total Paid-In Capital 5,250,000

Retained Earnings 11,800,000

Total Stockholders’ Equity \) 17,050,000

Common Stock—$1 Par Value; 7,000,000 shares 

 authorized, 1,350,000 shares issued and outstanding

Requirements

1. Identify the different classes of stock that Tillman Comfort Specialists has outstanding.

Step-by-Step Solution

Answer

Answer

Preferred stock and Common stock are the class of stock that are outstanding.

Step 1: Preferred stock definition

Preferred stock are shares of a corporation's stock with dividends that are paid out to stockholders before common stockholder's dividends are issued.

Step 2: The different classes of stock has outstanding

Preferred Stock: 325,000 shares issued and outstanding

Common Stock: 1,350,000 shares issued and outstanding