The following information is extracted from the shareholders' equity section of the statement of financial position of Gibson Clothing Inc. at December 31, 2018: Preferred shares, stated value $10, non-cumulative Issued and outstanding – 5,000 shares Common shares, stated value $2 Issued and outstanding – 20,000 shares Retained earnings $ 20,000 40,000 150,000 $210,000 Total shareholders' equity Additional information: a. There are $2,000 of dividends in arrears on the preferred shares. b. The liquidation value of the preferred shares is $25,000.
The following information is extracted from the shareholders' equity section of the statement of financial position of Gibson Clothing Inc. at December 31, 2018: Preferred shares, stated value $10, non-cumulative Issued and outstanding – 5,000 shares Common shares, stated value $2 Issued and outstanding – 20,000 shares Retained earnings $ 20,000 40,000 150,000 $210,000 Total shareholders' equity Additional information: a. There are $2,000 of dividends in arrears on the preferred shares. b. The liquidation value of the preferred shares is $25,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 15E
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![Accounting
CP 11-9
The following information is extracted from the shareholders' equity
section of the statement of financial position of Gibson Clothing Inc. at
December 31, 2018:
Preferred shares, stated value $10, non-cumulative
Issued and outstanding – 5,000 shares
Common shares, stated value $2
Issued and outstanding – 20,000 shares
Retained earnings
$ 20,000
40,000
150,000
$210,000
Total shareholders' equity
Additional information:
a. There are $2,000 of dividends in arrears on the preferred shares.
b. The liquidation value of the preferred shares is $25,000.
Required: Calculate the book value of preferred and common shares.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82e476d8-ea2f-4537-a337-ae131edad6a6%2Fdccacede-e19a-41b2-8dcc-ad6442697313%2Flydzr4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Accounting
CP 11-9
The following information is extracted from the shareholders' equity
section of the statement of financial position of Gibson Clothing Inc. at
December 31, 2018:
Preferred shares, stated value $10, non-cumulative
Issued and outstanding – 5,000 shares
Common shares, stated value $2
Issued and outstanding – 20,000 shares
Retained earnings
$ 20,000
40,000
150,000
$210,000
Total shareholders' equity
Additional information:
a. There are $2,000 of dividends in arrears on the preferred shares.
b. The liquidation value of the preferred shares is $25,000.
Required: Calculate the book value of preferred and common shares.
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