On December 31, 2023, Warner Publishing Inc. showed the following:

Required

Part 1:Calculate book value per common share and preferred share at December 31, 2023, assuming no dividends were declared for the years ended December 31, 2022, or 2023, and that the preferred shares are:

a. Cumulative

b. Non-cumulative

Part 2 

Assume no dividends were declared for the year ended December 31, 2022, and total dividends of $62,500 were declared and paid for the year ended December 31, 2023. Calculate book value per common share and preferred share at December 31, 2023, if preferred shares are:

c. Cumulative

d. Non-cumulative

Transcribed Image Text:

Warner Publishing Inc. Equity Section of Balance Sheet December 31, 2023 Contributed capital: Preferred shares, $0.75, unlimited shares authorized, 62,500 shares issued and outstanding* $500,000 Common shares, unlimited shares authorized, 156,250 shares issued and outstanding* 656,250 Total contributed capital Retained earnings Total equity *All of the shares had been issued early in 2022. $1,156,250 1,093,750 $2,250,000