Introduction:
Common Stock refers to securities which give its holders a share in the ownership of a corporation. Common stockholders have voting rights and they can elect the board of directors of a corporation.
Requirement 1:
To Calculate:
Current Market Value of Common Stock
Requirement 2:
To Calculate:
Par Value of
Requirement 3:
To Calculate:
Book Value per share of Common Stock if no dividends are in arrears
Requirement 4:
To Calculate:
Book Value per share of Common Stock if two years preferred dividends are in arrears
Requirement 5:
To Calculate:
Total amount of dividend to be paid to the Preferred and Common shareholders and Dividend per share for Common Stock
Requirement 6:
To Determine:
Reasons for common stock not being always a good estimate of its market value
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WORKING PAPERS F/ FUND ACCOUNTING
- Novak Company has the following stockholders' equity accounts at December 31, 2025. Common Stock ($100 par value, authorized 7,600 shares) $459,100 Retained Earnings 266,700 a. Prepare entries in journal form to record the following transactions, which took place during 2026 1. 290 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) 2. A $22 per share cash dividend was declared. 3. The dividend declared in (2) above was paid. 4. The treasury shares purchased in (1) above were resold at $101 per share. 5. 500 shares of outstanding stock were purchased at $103 per share. 6. 380 of the shares purchased in (5) above were resold at $96 per share. b. Prepare the stockholders' equity section of Novak Company's balance sheet after giving effect to these transactions, assuming that the net income for 2026 was $86,300. State law requires restriction of retained earnings for the amount of treasury stock.arrow_forwardResearch and Explain the current academic qualifications and relevant experience requirements, for tax agents to be to be registered under the Tax Agent Services Regulations 2009. (150 words)arrow_forwardDon't use aiarrow_forward
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