Problem 7

Jethro Company provided the following data at year-end:

12% Preference Share, 20,000 shares P 2,000,000

14% Preference share, 10,000 shares 3,000,000

Ordinary shares, 50,000 shares 5,000,000

Share Premium 1,500,000 Retained Earnings 2,240,000

The 12% preference share is cumulative and participating. The 14% preference share is non-cumulative and participating. Dividends are in arrears for 3 years.

Required: Compute for the book value per share of the following:

a. 12% Preference share

b. 14% Preference share

c. Ordinary share

d.

Problem 8

Borbor Corporation's stockholders' equity at December 31, 2018 was as follows:

6% noncumulative preference shares, 100 par

1,000,000 (liquidation value 105 per share)

Ordinary shares, 100 par 3,000,000

Retained earnings 950,000

Preferred dividends have been paid up to December 31, 2018.

Required: Compute for Borbor's book value per common share at December 31, 2018.

Problem 9

Nouf Corporation has an authorized capital of 10,000 shares of 100 par, 8% cumulative preferred stock and 20,000 shares of 100 par common stock. The equity account balances at December 31, 2018 are as follows:

Cumulative preferred stock 500,000 Common stock 1,100,000

Additional paid in capital 200,000 Retained earnings 260,000

Treasury stock, common-1,000 shares at cost (150,000)

Total shareholders' equity 1,910,000

Dividends on preferred stock are in arrears for 2017 and 2018.

Required: Compute for Nouf's book value per share at December 31, 2018.

Problem 10

Garry, Inc. has an authorized capital of 1,000, 100 par, 8% cumulative preference shares and 100,000, 10 par, ordinary shares. The equity account balances at December 31, 2018, are as follows:

Cumulative preference share	50,000
Ordinary share	90,000
Share premium	9,000
Retained earnings	13,000
Treasury shares, ordinary - 100 shares at cost	(2,000)
Total	160,000

Dividends on preferred stock are in arrears for the year 2018.

Required: Compute for Garry's book value per share at December 31, 2018.

Problem 11

HAROLD Corp.'s current balance sheet reports the following stockholders' equity:

5% cumulative preference shares, 100 par value	250,000
Ordinary share, par value 3.50 per share	350,000
Share premium on ordinary shares	125,000
Retained earnings	300,000

Dividends in arrears on the preference share amount to 25,000. If Harold were to be liquidated, the preference stockholders would receive par value plus a premium of 50,000.

Required: Compute for Harold's book value per share at December 31, 2018.

Problem 12

Manny Corp.'s shareholders' equity at December 31, 2018, comprised the following:

6% cumulative preference share, 100 par; liquidating value 110 per share; authorized, issued, and outstanding 50,000 shares	5,000,000
Ordinary share, 5 par; 1,000,000 shares authorized; issued and outstanding 400,000 shares	2,000,000
Retained earnings	1,000,000

Dividends on preferred stock have been paid through 2017 but have not been declared for 2018.

Required: Compute for Manny's book value per share at December 31, 2018.