Uzi Company received a charter granting the right to issue 200,000 shares of $1.00 par value common stock and 10,000 shares of 8% cumulative and nonparticipating, $50.00 par value preferred stock that is callable at $80.00 per share. Selected transactions are presented below. 20X1 Feb. 19 22 Mar Issued 45,000 shares of common stock at par for cash. Gave the corporation's promoters 30,000 shares of common stock for their services in getting the corporation organized. The directors valued the services at $50,000. Exchanged 100,000 shares of common stock for the following assets at fair market values: land, $25,000; building, $100,000; and machinery, $125,000. 30 Dec. Closed the Income Summary account. A $25,000 loss was incurred. 31 20X2 Jan. Issued 1,000 shares of preferred stock at $75 per share. 12 Dec. 15 31 20X3 Jan. 31 The board of directors declared an 8% dividend on preferred shares and $0.10 per share on outstanding common shares, payable on January 31 to the January 17 stockholders of record. Closed the Income Summary account. A $69,000 net income was earned. Paid the previously declared dividends. Determine the book value per preferred share and per common stock as of December 31, 20X2.
Uzi Company received a charter granting the right to issue 200,000 shares of $1.00 par value common stock and 10,000 shares of 8% cumulative and nonparticipating, $50.00 par value preferred stock that is callable at $80.00 per share. Selected transactions are presented below. 20X1 Feb. 19 22 Mar Issued 45,000 shares of common stock at par for cash. Gave the corporation's promoters 30,000 shares of common stock for their services in getting the corporation organized. The directors valued the services at $50,000. Exchanged 100,000 shares of common stock for the following assets at fair market values: land, $25,000; building, $100,000; and machinery, $125,000. 30 Dec. Closed the Income Summary account. A $25,000 loss was incurred. 31 20X2 Jan. Issued 1,000 shares of preferred stock at $75 per share. 12 Dec. 15 31 20X3 Jan. 31 The board of directors declared an 8% dividend on preferred shares and $0.10 per share on outstanding common shares, payable on January 31 to the January 17 stockholders of record. Closed the Income Summary account. A $69,000 net income was earned. Paid the previously declared dividends. Determine the book value per preferred share and per common stock as of December 31, 20X2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Uzi Company received a charter granting the right to issue 200,000 shares of $1.00 par value common
stock and 10,000 shares of 8% cumulative and nonparticipating, $50.00 par value preferred stock
that is callable at $80.00 per share. Selected transactions are presented below.
20X1
Feb.
19
22
Mar
Issued 45,000 shares of common stock at par for cash.
Gave the corporation's promoters 30,000 shares of common stock for their services in
getting the corporation organized. The directors valued the services at $50,000.
Exchanged 100,000 shares of common stock for the following assets at fair market values:
land, $25,000; building, $100,000; and machinery, $125,000.
30
Dec.
Closed the Income Summary account. A $25,000 loss was incurred.
31
20X2
Jan.
Issued 1,000 shares of preferred stock at $75 per share.
12
Dec.
15
31
20X3
Jan.
31
The board of directors declared an 8% dividend on preferred shares and $0.10 per share
on outstanding common shares, payable on January 31 to the January 17 stockholders of
record.
Closed the Income Summary account. A $69,000 net income was earned.
Paid the previously declared dividends.
Determine the book value per preferred share and per common stock as of December 31, 20X2.
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