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60,000 net loss 0,000 net loss 00,000 net loss r 31, 2020, Raiden Inc. share c.

60,000 net loss 0,000 net loss 00,000 net loss r 31, 2020, Raiden Inc. share c.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information for the next two items: Raiden Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018: P260,000 net loss 2019: P40,000 net loss 2020: P400,000 net loss At December 31, 2020, Raiden Inc. share capital accounts were as follows. 6% Preference share capital, P100 par, 5,000 shares P500,000 Ordinary share capital, P1 par, 750,000 shares 750,000 Share premium - preference 100,000 Share premium - ordinary 250,000 Raiden Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Raiden began operations, The preference shares have a liquidating value of P106 per share. Note: Round off per share information to the nearest centavo, Based on the information above, answer the following: 1. Compute the book value per share of ordinary capital assuming that the preference shares are noncumulative. 2. Compute the book value per share of ordinary capital assuming that the preference shares are cumulative.
Transcribed Image Text:Use the following information for the next two items: Raiden Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018: P260,000 net loss 2019: P40,000 net loss 2020: P400,000 net loss At December 31, 2020, Raiden Inc. share capital accounts were as follows. 6% Preference share capital, P100 par, 5,000 shares P500,000 Ordinary share capital, P1 par, 750,000 shares 750,000 Share premium - preference 100,000 Share premium - ordinary 250,000 Raiden Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Raiden began operations, The preference shares have a liquidating value of P106 per share. Note: Round off per share information to the nearest centavo, Based on the information above, answer the following: 1. Compute the book value per share of ordinary capital assuming that the preference shares are noncumulative. 2. Compute the book value per share of ordinary capital assuming that the preference shares are cumulative.
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