compute the amount payable to each class of stock. The stockholders” equity sections from three…

compute the amount payable to each class of stock. The stockholders” equity sections from three different corporations” balance sheets follow.

1) Stockholders” equity:

 

 

Paid-in capital:

 

 

Preferred stock—7% cumulative, $240 par value,500 shares

 

 

authorized, issued, and outstanding

$ 120,000

 

Common stock—$48 par value, 10,000 shares authorized,

 

 

issued and outstanding

480,000

 

Total paid-in capital

 

 

Retained earnings

 

$ 600,000

Total stockholders” equity

 

422,400

(All dividends have been paid.)

 

$1,022,400

2) Stockholders” equity:

 

 

Paid-in capital:

 

 

Preferred stock—6% cumulative, $80 par value,10,000

 

 

shares authorized, issued, and outstanding

$ 800,000

 

Common stock—$240 par value, 30,000shares authorized,

 

 

issued and outstanding

7,200,000

 

Total paid-in capital

 

$8,000,000

Retained earnings

 

88,000

Total stockholders” equity

 

$8,088,000

(The current year”s dividends have not been paid.)

 

 

3) Stockholders” equity:

 

 

Paid-in capital:

 

 

Preferred stock—7% cumulative, $480 par value,10,000

 

 

shares authorized, issued, and outstanding

$4,800,000

 

Common stock—$240 par value, 50,000shares authorized,

 

 

issued and outstanding

12,000,000

 

Total paid-in capital

 

$16,800,000

Retained earnings deficit

 

(1,872,000)

Total stockholders” equity

 

$14,928,000

(Dividends have not been paid for 2 previous years or the current year.)

 

 

Compute the book values per share of the preferred and common stock of each corporation assuming that in a liquidation the preferred stock receives par value plus dividends in arrears.

 

Looking for a Similar Assignment? Hire our Top Uk Tutors while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15