Question

A Identifying sources of equity, stock issuance, and dividends

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

Preferred Stock—7%, ? Par Value; 625,000 shares

authorized, 280,000 shares issued and outstanding

Paid-In Capital:

\( 1,400,000

1,340,000

Stockholders’ Equity

Paid-In Capital in Excess of Par—Common 2,900,000

Total Paid-In Capital 5,640,000

Retained Earnings 12,000,000

Total Stockholders’ Equity \) 17,640,000

Common Stock—$1 Par Value; 3,000,000 shares

authorized, 1,340,000 shares issued and outstanding

Requirements

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

Short answer

Preferred stock including280,000 shares and Common stock including 1,340,000 shares are outstanding.

Step-by-step solution

Basic Introduction

Outstanding stock is the number of shares whether preferred and/or common issued by a corporation out of the authorized number of shares in the open market.

The different classes of stock outstanding-

Preferred stock 280,000 shareissued and outstanding i.e., $1,400,000

Common stock 1,340,000 sharesissued and outstanding i.e., $1,340,000