Question
Book Value Calculation: a. ABC & company, having Authorized Capital of 1,000,000 shares, issued 400,000 shares @ Rs. 20 with the Face Value of Rs.
Book Value Calculation: a. ABC & company, having Authorized Capital of 1,000,000 shares, issued 400,000 shares @ Rs. 20 with the Face Value of Rs. 10 each. b. Company has also issued 10% Preferred Stock, Authorized 10,000 shares, and issued 4,000 @ Rs. 110 and with the Face Value Rs. 100 each. c. Dividend in arrears Rs.40,000 d. Retained earnings of the company are Rs. 400,000. e. The Preferred stock is callable @ Rs. 120
The Following is required i. Make journal entries for (a & b) ii. Calculate Book Value of Preferred Stock and Common Stock per share, if Preferred Stock is cumulative in nature. iii. Calculate Book Value of Preferred Stock and Common Stock per share, if Preferred Stock is non-cumulative in nature. iv. Analyze the Book values of Common Stocks both for Cumulative & Non-Cumulative in nature. v. Make Total Share Holder Equity Statement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started