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.

Short answer

Answer

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

Step-by-step solution

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.

The different classes of stock has outstanding

Preferred Stock: 325,000 shares issued and outstanding

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