Wave Water Company reported the following items on its statement of shareholders equity for the year ended

Question:

Wave Water Company reported the following items on its statement of shareholders€™ equity for the year ended December 31, 2012:

Requirements
1. Determine the December 31, 2012, balances in Wave Water€™s shareholders€™ equity accounts and total shareholders€™ equity on this date.
2. Wave Water€™s total liabilities on December 31, 2012, are $7,800. What is Wave Water€™s debt ratio on this date?
3. Was there a profit or a loss for the year ended December 31, 2012? How can you tell?
4. At what price per share did Wave Water issue common stock during2012?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...