Early in 2010, Samsung was formed with authorization to issue 100,000 shares of 10 par value common
Question:
Early in 2010, Samsung was formed with authorization to issue 100,000 shares of €10 par value common stock and 20,000 shares of €90 par value cumulative preferred stock.
During 2010, all the preferred stock was issued at par, and 70,000 shares of common stock were sold for €30 per share. The preferred stock is entitled to a dividend equal to 11 percent of its par value before any dividends are paid on the common stock.
During its first five years of business (2010 through 2014), the company earned income totaling €,5000,000 and paid dividends of 1€s per share each year on the common stock outstanding.
On January 1, 2012, the company purchased 1,000 shares of its own common stock in the open market for €30,000. On January 2, 2014, it reissued 800 shares of this treasury stock for €30,000. The remaining 200 shares were still held in treasury at December 31, 2014.
Question :
a.- Prepare the stockholders’ equity section of the balance sheet at December 31, 2014. Include a supporting schedule showing (1) your computation of any paid-in capital on treasury stock and (2) retained earnings at the balance sheet date.
b.-As of December 31, 2014, compute the company’s book value per share of common stock.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello