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DeZurik Corporation had the following stockholders' equity section in its June $30,2022,$ balance sheet $($in thousands, except share

and per share amounts$)$:

June $30($in

thousands$)2022$

Paid$-$in capital:

$$4\mathrm{.}50$ Preferred stock, $ $?$ par value, cumulative, $150,000$ shares authorized,

$64,000$ shares issued and outstanding

Common stock, $$5$ par value, $4,000,000$ shares authorized, $1,640,000$ shares

issued, $1,500,000$ shares outstanding

Additional paid$-$in capital on common stock $22,960$

Retained earnings

Required:

a$.$ Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.

b$.$ Calculate the amount that should be shown on the balance sheet for common stock at June $30,2022.$

c$.$ What was the average issue price of common stock shown on the June $30,2022,$ balance sheet?

d$.$ How many shares of treasury stock does DeZurik Corporation own at June $30,2022?$

e$.$ Assume that the treasury shares were purchased for $$21$ per share. Calculate the amount that should be shown on the balance

sheet for treasury stock at June $30,2022.$

f$.$ Calculate the retained earnings balance at June $30,2022,$ after you have completed parts a to e$.($Hint: Keep in mind that Treasury

Stock is a contra account.$)$

g$.$ Assume that the Retained Earnings balance on July $1,2021,$ was $$13,400($in thousands$)$ and that net income for the year ended

June $30,2022,$ was $$908($in thousands$).$ The $2022$ preferred dividends were paid in full, and no other dividend transactions were

recorded during the year. Verify that the amount shown in the solution to part f is correct. $($Hint: Prepare a statement of retained

earnings or do a T$-$account analysis to determine the June $30,2022,$ balance.$)$

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