1-78 Prepare stockholders\' equity section compute book value per share he follo
ID: 2553542 • Letter: 1
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1-78 Prepare stockholders' equity section compute book value per share he following stockholders' equity accounts arranged alphabetically are in the ledger of Crivello orporation at December 31, 2019. Common Stock ($3 stated value Paid-in Capital from Treasury Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-common Stock Preferred Stock (8%, $50 par, noncumulative) Retained Earnings Treasury Stock (8,000 common shares) $2,400,000 10,000 220,000 1,600,000 800,000 1,448,000 75,000 Instructions (a) Prepare a stockholders equity section at December 31. 2018 NOTE: Enter either a number or a formula in the yellow cells. ue per share of the common stock, assuming the preferred stock has a call price of $60 per share CRIVELLO CORPORATION Stockholders' equity Paid-in capitalExplanation / Answer
Crivello Corporation
Stockholders' Equity as on December 31, 2018
Paid-in Capital:
Capital Stock
8% Preferred stock, $50 par, non-cumulative, 16,000 shares issued
$800,000
Common Stock, no par, $3 stated value, 800,000 shares issued and 790,000 outstanding
$2,400,000
Total Capital Stock
$3,200,000
Additional Paid-in Capital:
In excess par Preferred Stock
$220,000
In excess of stated value, Common Stock
$1,600,000
From Treasury Stock
$10,000
Total additional paid-in capital
$1,830,000
Retained Earnings
$1,448,000
Total paid-in capital and retained earnings
$3,278,000
Less: Treasury Stock (10,000 common shares)
($75,000)
Total Stockholders' Equity
$6,403,000
Total Equity
$6,403,000
Less: Preferred stock equity, Call price (16,000 x $60)
($960,000)
Common Stock Equity
$5,443,000
Common shares outstanding
790,000
Book value per share
$6.89 per share
(5,443,000/790,000 = $6.89)
Note: Since the preference shares are non-cumulative, no dividends are considered for preferred share equity.
Crivello Corporation
Stockholders' Equity as on December 31, 2018
Paid-in Capital:
Capital Stock
8% Preferred stock, $50 par, non-cumulative, 16,000 shares issued
$800,000
Common Stock, no par, $3 stated value, 800,000 shares issued and 790,000 outstanding
$2,400,000
Total Capital Stock
$3,200,000
Additional Paid-in Capital:
In excess par Preferred Stock
$220,000
In excess of stated value, Common Stock
$1,600,000
From Treasury Stock
$10,000
Total additional paid-in capital
$1,830,000
Retained Earnings
$1,448,000
Total paid-in capital and retained earnings
$3,278,000
Less: Treasury Stock (10,000 common shares)
($75,000)
Total Stockholders' Equity
$6,403,000
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