Watusi Inc. began operations in January2021 and reported the following results foreach of its 3 years of operations.2021260,000 net loss202240,000 net loss2023700,000 net incomeAt December 31, 2023, Watusi Inc. sharecapital accounts were as follows:Share Capital-Preference, 500,0006% cumulative, par valueP100; authorized, issued,and outstanding 5,000sharesShare Capital–Ordinary,750,000par value P1.00; authorized1,000,000 shares; issuedand outstanding 750,000shares Watusi Inc. has never paid a cash or sharedividend. There has been no change in theshare capital accounts since Watusi beganoperations. The country law permitsdividends only from retained earnings.InstructionsREQUIREMENTSa. Compute the book value of the ordinaryshares at December 31, 2023.b. Compute the book value of the ordinaryshares at December 31, 2023, assumingthat the preference shares have aliquidating value of P106 per share.

a) Computation of Book Value per share : Particulars Amount Amount Preferred Stock 260,000…

Answered: a. Compute the book value of the…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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a. Compute the book value of the ordinary shares at December 31, 2023. b. Compute the book value of the ordinary shares at December 31, 2023, assuming that the preference shares have a liquidating value of P106 per share.