QUESTION 21 Marla Corporation\'s ledger includes the following selected account

Question

QUESTION 21 Marla Corporation's ledger includes the following selected account balances at December 31, 2012 Paid-in Capital in Excess of Par Value, Common Cash Unearned Revenue Discount on Bonds Payable Retained Earnings Paid-in Capital in Excess of Par Value, Preferred Cash Dividends Payable Treasury Stock, Common, 36,000 shares Accounts Payable Preferred Stock, 12% $1 00 par value, 4,000 shares issued Bonds Payable, 14% Common Stock, $1 par value, 240,000 shares issued How much is the book value per share of common stock at December 31, 2012, assuming the preförred stock's liquidation value is equal to the par value and there are no dividends in arrears? (Round answer to the nearest whole cent.) 560,000 820,000 55,000 75,000 300,000 100,000 80,000 40,000 120,000 400,000 900,000

Explanation / Answer

The book value per share of common stock is calculated as below:

Book Value Per Share of Common Stock = (Value of Common Stock + Paid in Capital in Excess of Par, Common + Retained Earnings - Value of Treasury Stock)/(Number of Common Stock Issued - Number of Treasury Shares)

_____

Using the values provided in the question in the above formula, we get,

Book Value Per Share of Common Stock = (240,000 + 560,000 + 300,000 - 40,000)/(240,000 - 36,000) = $5.20

Therefore, answer is "None of the above" (which is Option D).

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.