The following stockholders* equity accounts arranged alphabetically are in the ledger of Rizzo Corporation at December 31. 2006.

Instructions

(a) Prepare a stockholders" equity section at December 31. 2006.

(b) Compute the book value per share of the common stock, assuming the preferred stock has a call price of $60 per share.

Transcribed Image Text:

Common Stock ($5 stated value) Paid-in Capital from Treasury Stock Paid-in Capital in Excess of Stated Value-Common Stock Paid-in Capital in Excess of Par Value Preferred Stock Preferred Stock (8%. $50 par. noncumulative) Retained Earnings Treasury Stock-Common (10,000 shares) $2.500.000 10,000 1,600,000 679,000 800,000 1.448,000 130,000