Compute the book value per share of the common stock. No preferred dividends are in arrears, and…
We're the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click either of the buttons below to place your order.
Order a Similar Paper
Order a Different Paper
The balance sheet of Trendline Corp. reported the following at December 31, 20X6.
Stockholders’ Equity
Preferred stock, 4%, $10 par, 10,000 shares authorized and issued (redemption value, $110,000)
$100,000
Common stock, no-par, $5 stated value, 100,000 shares authorized, 50,000 shares issued
250,000
Paid-in capital in excess of par or stated value:
Common stock
239,500
Retained earnings
395,000
Less: Treasury stock, common (1,000 shares)
(8,000)
Total stockholders’ equity
$976,500
Required
a. Is the preferred stock cumulative or noncumulative? How can you tell?
b. What is the total amount of the annual preferred dividend?
c. How many shares of common stock are outstanding?
d. Compute the book value per share of the common stock. No preferred dividends are in arrears, and Trendline has not yet declared the 20X6 dividend.
2. Use the following accounts and related balances to prepare the classified balance sheet of Whitehall, Inc., at September 30, 20X7. Use the account format of the balance sheet.
Common stock, $1 par, 50,000 shares authorized, 20,000 shares issued
20,000
Long-term note payable
80,000
Dividends payable
4,000
Inventory
85,000
Cash
9,000
Property, plant, and equipment, net
226,000
Accounts payable
28,000
Accounts receivable, net
23,000
Paid-in capital in excess of par common
115,000
Preferred stock, $3.75, no-par, 10,000 shares authorized, 2,000 shares issued
24,000
Treasury stock, common, 1,000 shares at cost
6,000
Accrued liabilities
3,000
Retained earnings
75,000