On December 31, 2023, University Security Inc. showed the following:

Required

Part 1:

Calculate book value per common share and preferred share at December 31, 2023, assuming $0 being paid out in 2022 and $91,000 being paid out in 2023 (the preferred dividends for 2 years are calculated - $91,000 dividends paid, showing $21,000 in arrears).

a. Cumulative

b. Non-cumulative

Part 2

Calculate book value per common share and preferred share at December 31, 2023, assuming total dividends of $91,000 were declared and paid in each of the years ended December 31, 2022 and 2023, and that the preferred shares are:

c. Cumulative

d. Non-cumulative

Transcribed Image Text:

University Security Inc. Equity Section of Balance Sheet December 31, 2023 Contributed capital: Preferred shares, $4, unlimited shares authorized, 14,000 shares issued and outstanding* Common shares, unlimited shares authorized, 35,000 shares issued and outstanding* Total contributed capital Retained earnings Total equity *All of the shares had been issued early in 2022. $ 308,000 455,000 $763,000 952,000 $1,715,000