Using data from the stockholders' equity section of Soong Corporation's balance sheet shown below, compute the book
Question:
Using data from the stockholders' equity section of Soong Corporation's balance sheet shown below, compute the book value per share for both the preferred and the common stock.
Contributed capital
Preferred stock, $100 par value, 8 percent
Cumulative, 20,000 shares authorized,
1,000 shares issued and outstanding*..................................... $ 100,000
Common stock, $10 par value, 200,000 shares
Authorized, 80,000 shares issued and
Outstanding..................................................................... 800,000
Additional paid-in capital...................................................1,032,000
Total contributed capital...................................................$1,932,000
Retained earnings...............................................................550,000
Total stockholders' equity................................................. $2,482,000
*The preferred stock is callable at $108 per share, and one year's dividends are in arrears.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Principles of Accounting
ISBN: 978-0618736614
10th edition
Authors: Belverd Needles, Marian Powers, Susan Crosson