1. Deer Company has the following amounts in the Stockholders\' Equity category
ID: 2744770 • Letter: 1
Question
1. Deer Company has the following amounts in the Stockholders' Equity category of the balance sheet at December 31, 2014:
Preferred Stock, $100 par, 8%, noncumulative (liquidation value of $110 per share) - $100,000
Paid-In Capital - Preferred - 50,000
Common Stock, $5 par - 400,000
Paid-In Capital - Common - 40,000
Retained Earnings - 200,000
Determine the book value per share: $_______per share
2. Nash Company has the following accounts among the items on the balance sheet at January 1, 2014:
During 2014, the company issued 500 shares of common stock at $14 per share and reissued 400 shares of treasury stock at $20 per share. The company reported a net income of $60,000 for 2014.
Balance Sheet:
Stockholders’ Equity
Common Stock, $10 par, 10,000 authorized, 9,000 issued
$
Preferred Stock, $100 par, 8%, Cumulative…
Additional paid-in capital
Total Contributed Capital
Retained Earnings
Less: Treasury Stock
Total Stockholders’ equity
$_____________
Stockholders’ Equity
Common Stock, $10 par, 10,000 authorized, 9,000 issued
$
Preferred Stock, $100 par, 8%, Cumulative…
Additional paid-in capital
Total Contributed Capital
Retained Earnings
Less: Treasury Stock
Total Stockholders’ equity
$_____________
Explanation / Answer
Requirement 1:
Total Book Value:
Common Stock $40000
Retained Earnings $200000
Total Book Value $240000
Number of Shares:
Common Stock 80000
Book Value per share = Total Book Value / Total Number of Shares
= $240000 / 80000
= $3
Requirement 2:
Stockholders’ Equity
Common Stock, $10 par, 10000 authorized, 9500 issued
$95000
Preferred Stock, $100 par, 8% Cumulative
$800000
Additional Paid in Capital
$202000 (200000 + (4*500))
Total Contributed Capital
$1097000
Retained Earnings
$160000 (100000 + 60000)
Less: Treasury Stock
$12000 (20000 – (20*400))
Total Stockholders’ Equity
$1245000
Stockholders’ Equity
Common Stock, $10 par, 10000 authorized, 9500 issued
$95000
Preferred Stock, $100 par, 8% Cumulative
$800000
Additional Paid in Capital
$202000 (200000 + (4*500))
Total Contributed Capital
$1097000
Retained Earnings
$160000 (100000 + 60000)
Less: Treasury Stock
$12000 (20000 – (20*400))
Total Stockholders’ Equity
$1245000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.