QUESTION #45: Required information [The following information applies to the que
ID: 2328216 • Letter: Q
Question
QUESTION #45: Required information
[The following information applies to the questions displayed below.]
Shown below is information relating to the stockholders' equity of Reeve Corporation as of December 31, 2018:
PART A: How many shares of preferred stock are issued and outstanding?
PART B: What was the original issue price per share of common stock?
PART C: What is total paid-in capital?
PART D: Total stockholders' equity is?
PART E: Book value per share of common stock is? (Round to 2 decimal places.)
Can someone please help me find the answers to this question?
Will you show each step and give an explanation so I know how to do it?
**no handwritten/photo answers, thank you****
148,000 shares issued and outstanding 1,480,000 Additional paid-in capital: Common stock 444,000 Retained earnings (Deficit) (74,000 ) Dividends in arrears 42,000
Explanation / Answer
Answer of Part A:
No. of Preferred Stock issued and outstanding = Total Preferred Stock Value / Value per share
No. of Preferred Stock issued and outstanding = $1,200,000 / 100
No. of Preferred Stock issued and outstanding = 12,000
Answer of Part B:
Price per share of common stock = (Common Stock Value + Additional Paid in Capital) / No. of shares
Price per share of common stock = ($1,480,000 + $444,000) / 148,000
Price per share of common stock = $1,924,000 / 148,000
Price per share of common stock = $13
Answer of Part C:
Total Paid in Capital = Preferred Stock + Common Stock + Additional Paid in Capital
Total Paid in Capital = $1,200,000 + $1,480,000 + $444,000
Total Paid in Capital = $3,124,000
Answer of Part D:
Total Stockholders’ Equity = Preferred Stock + Common Stock + Additional Paid in Capital – Retained Earnings (Deficit)
Total Stockholders’ Equity = $1,200,000 + $1,480,000 + $444,000 - $74,000
Total Stockholders’ Equity = $3,050,000
Answer of Part E:
Book Value = (Common Stock + Additional Paid in Capital – Retained Earning) / No. of common stock
Book Vale = ($1,480,000 + $444,000 - $74,000) / 148,000
Book Value = $1,850,000 / 148,000
Book Value = $12.5 per share
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