a) Calculation of Book Value Common Stock :-
= Common Stock Capital + Dividend to Common Stock
= $721000 + $307800
= $1028800
Common Stock Book Value Per Stock = Total Book Value of Common stock / Total Shares
= $1028800 / 721000
= $1.43 Per Share
Dividend to Common Stock :-
= Retained Earing - Arrears Dividend of Preferred Stock
= ($726000-$263000-$40000) - ($480000*8%*3 years)
= $423000 - $115200
= $307800
b) Calculation of Book Value Common Stock :-
= Common Stock Capital + Dividend to Common Stock
= $721000 + 279000
= $1000000
Common Stock Book Value Per Stock = Total Book Value of Common stock / Total Shares
= $1000000 / 721000
= $1.39 Per Share
Dividend to Common Stock :-
= Retained Earing - Arrears Dividend of Preferred Stock - Excess of Par of Preferred Stock
= ($726000-$263000-$40000) - ($480000*8%*3 years) - (4800*($106-$100))
= $423000 - $115200 - $28800
= $279000
Your answer is incorrect. Teal Inc. bagan operations in January 2018 and reported the following results...
Sweet Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $242,000 net loss 2019 $40,000 net loss 2020 $875,000 net income At December 31, 2020, Sweet Inc. capital accounts were as follows. $480,000 7% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,800 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 729,000 shares $729,000 Sweet Inc. has never paid a cash or stock...
Riverbed Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $42,000 net loss 2020 $843,000 net income At December 31, 2020, Riverbed Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares $450,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 778,000 shares $778,000 Riverbed Inc. has never paid a cash or stock...
Indigo Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $240,000 net loss 2019 $37,000 net loss 2020 $765,000 net income At December 31, 2020, Indigo Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,800 shares $480,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 756,000 shares $756,000 Indigo Inc. has never paid a cash or stock...
Flint Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $249,000 net loss 2019 $42,000 net loss 2020 $743,000 net income At December 31, 2020, Flint Inc. capital accounts were as follows. $530,000 8% cumulative preferred stock, par value $100; authorized, issued and outstanding 5,300 shares Common stock, par value $1.00; authorized 1,000,000 shares: Issued and outstanding 780,000 shares $780,000 Flint Inc. has never paid a cash or stock...
Martinez Inc. began operations in January 2018 and reported the
following results for each of its 3 years of operations.
2018
$268,000 net loss
2019
$38,000 net loss
2020
$775,000 net income
At December 31, 2020, Martinez Inc. capital accounts were as
follows.
8% cumulative preferred stock, par value $100; authorized,
issued,
and outstanding 4,500 shares
$450,000
Common stock, par value $1.00; authorized 1,000,000
shares;
issued and outstanding 741,000
shares
$741,000
Martinez Inc. has never paid a cash or stock...
Windsor Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $237,000 net loss 2019 $42,000 net loss 2020 $860,000 net income At December 31, 2020, Windsor Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,200 shares $520,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 759,000 shares $759,000 Windsor Inc. has never paid a cash or stock...
Vaughn Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $274,000 net loss 2019 $44,000 net loss 2020 $880,000 net income At December 31, 2020, Vaughn Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,100 shares $510,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 702,000 shares $702,000 Vaughn Inc. has never paid a cash or stock...
Concord Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $268,000 net loss 2019 $38,000 net loss 2020 $775,000 net income At December 31, 2020, Concord Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares $450,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 741,000 shares $741,000 Concord Inc. has never paid a cash or stock...
Current Attempt in Progress Oriole Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $246,000 net loss 2019 $39,000 net loss 2020 $810,000 net income At December 31, 2020, Oriole Inc. capital accounts were as follows. $510,000 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,100 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 805,000 shares $805,000 Oriole Inc. has never paid...
Larkspur Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $40,000 net loss 2020 $765,000 net income At December 31, 2020, Larkspur Inc. capital accounts were as follows. $500,000 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,000 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 682,000 shares $682,000 Larkspur Inc. has never paid a cash or stock...