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  3. on 3: bauman pharmaceutics was organized early in

ON 3: Bauman Pharmaceutics was organized early in 2006 with authorization to issue 50,000 shares...

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Accounting

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ON 3: Bauman Pharmaceutics was organized early in 2006 with authorization to issue 50,000 shares of $ 100 par value preferred stock and 1 million shares of $ 1 par value common stock. All of the preferred stock was issued at par, and 600,000 shares of common stock were sold for $ 16 per share. The preferred stock pays a 9% cumulative dividend and is callable at $ 110. During the first five years of operations (2006 through 2010), the corporation earned a total of $ 6920,000 and paid dividends of 50 cents per share each year on the common stock. In 2011, however, the corporation reported a net loss of $ 2400,000 and paid on dividends. Required: a. Prepare the stockholders' equity section of the balance sheet at December 31, 2011 b. Prepare a separates supporting schedule showing your computation of the amount of retained earnings or deficit

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