The balance sheet of Trendline Corp. reported the following at December 31, 20X6.

Stockholders’ Equity

Preferred stock, 4%, $10 par, 10,000 shares authorized and issued (redemption value, $110,000)

$100,000

Common stock, no-par, $5 stated value, 100,000 shares authorized, 50,000 shares issued

250,000

Paid-in capital in excess of par or stated value:

Common stock

239,500

Retained earnings

395,000

Less: Treasury stock, common (1,000 shares)

(8,000)

Total stockholders’ equity

$976,500

Required

a. Is the preferred stock cumulative or noncumulative? How can you tell?

b. What is the total amount of the annual preferred dividend?

c. How many shares of common stock are outstanding?

d. Compute the book value per share of the common stock. No preferred dividends are in arrears, and Trendline has not yet declared the 20X6 dividend.

2. Use the following accounts and related balances to prepare the classified balance sheet of Whitehall, Inc., at September 30, 20X7. Use the account format of the balance sheet.

Common stock, $1 par, 50,000 shares authorized, 20,000 shares issued

20,000

Long-term note payable

80,000

Dividends payable

4,000

Inventory

85,000

Cash

9,000

Property, plant, and equipment, net

226,000

Accounts payable

28,000

Accounts receivable, net

23,000

Paid-in capital in excess of par common

115,000

Preferred stock, $3.75, no-par, 10,000 shares authorized, 2,000 shares issued

24,000

Treasury stock, common, 1,000 shares at cost

6,000

Accrued liabilities

3,000

Retained earnings

75,000