Question

Problem 14-05A a-b The following stockholders' egquity accounts arranged alphabetically are in the ledger of Cullumber Corporation at December 31, 2020. Common Stock ($10 stated value) $1,300,000 Paid-in Capital from Treasury Stock 5,000 Paid-in Capital in Excess of Par-Preferred Stock 42,800 Paid-in Capital in Excess of Stated Value-Common Stock 675,000 Preferred Stock (8%, $100 par, noncumulative) 480,000 Retained Earnings 771,000 Treasury Stock-Common (8,000 shares) 91,000 M Your answer is correct. Prepare a stockholders' equity section at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.) Cullumber Corporation Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock 480000 Common Stock 1300000 Total Capital Stock 1780000 Additional Paid-in Capital Paid-in Capital in Excess of Par-Preferred Stock 42800 Paid-in Capital in Excess of Stated Value-Common 675000 Paid-in Capital from Treasury Stock 5000 722800 Total Additional Paid-in Capital

Answer 1

Preferred equity = ( Preferred stock / Par value per share ) * Call price per share = ( 480000 / 100 ) * 110	528000
Shares of common stock outstanding = ( Common stock / Par value per share ) - Treasury stock shares = ( 1300000 / 10 ) - 8000	122000
Book value per share of the common stock = ( Total stockholders' equity - Preferred equity ) / Shares of common stock outstanding = ( 3182800 - 528000 ) / 122000	21.76