On December 31, 2014, Warnex Inc. showed the following:

Required
Part 1:
Calculate book value per common share and preferred share at December 31, 2014, assuming no dividends were declared for the years ended December 31, 2013 or 2014, and that the preferred shares are:
a. Cumulative,
b. Non-cumulative.

Part 2
Assume no dividends were declared for the year ended December 31, 2013 and total dividends of
$62,500 were declared and paid for the year ended December 31, 2014. Calculate book value per common share and preferred share at December 31, 2014, if preferred shares are:
c. Cumulative,
d.Non-cumulative.

Transcribed Image Text:

Warnex Inc. Equity Section of Balance Sheet December 31, 2014 Contributed capital Preferred shares, $0.75, unlimited shares authorized, $500,000 Common shares, unlimited shares authorized 156,250 shares issued and outstanding*... 656,250 $ 1,156,250 1,093,750 2,250,000 capital Total equity..