Question NO 3: The yearend balance sheet of LaserJet, Inc. includes the following stockholder s equity section. Stockholder s equity: (10 Marks)

Rs. 8 cumulative preferred stock, Rs. 100 par value, callable at Rs. 103,

200,000 shares authorized Rs. 6,000,000

Common stock, Rs. 2 par value, 5,000,000 shares

Authorized:

Issued Rs. 3,600,000

Subscribed 1,400,000 5,000,000

Additional paid in capital

Preferred Rs. 240,000

Common (including subscribed shares) 25,000,000 25,240,000

Retained earnings 3,690,000

Total stockholder s equity Rs. 39,930,000

Assets of the corporation include subscriptions receivable, Rs. 5,600,000.

Requirement:

a. How many shares of commons stock have been issued or subscribed? (2 marks)

b. What is the total legal capital, including shares subscribed? (2 marks)

c. What is the total paid in capital, including shares subscribed? (3 marks)

d. What is the book value per share of the common stock, assuming that no dividends in arrears. (3 marks)