Extracted text: %24 %24 Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: 2 Issues 100,000 shares of common stock for $28 per share. 6 Issues 2,300 shares of 8% preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $33 per share. January February December 15 Resells 5,000 shares of treasury stock at $38 per share. In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,840 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Common stock 100,000 Preferred stock 23,000 Additional paid-in capital Total paid-in capital 123,000 Retained earnings Treasury stock Total stockholders' equity 123,000
Extracted text: Nathan's Athletic Apparel has 1,500 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $20,000 in 2021. Required: 1. & 2. How much of the $20,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative? Cumulative Non Cumulative Preferred dividends in arrears for 2020 Preferred dividends for 2021 Remaining dividends to common stockholders Total dividends 0 $ %24