Explore BrainMass

Explore BrainMass

    Book Value of common stock and preferred: Cleveland Company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Cleveland Company reports the following information as of 12/31/2012:

    -10% cumulative preferred stock, par value
    $100, One-year of dividends in arrears; 20,000
    shares authorized; issued, 10,000 shares;
    $1,000,000

    -Common stock - authorized 500,000; 40,000
    outstanding; $2 par value - $80,000

    Additional paid-in-capital - $450,000
    -Retained Earnings - $2,000,000

    21. The book value per share of common stock is:
    A) $57.75
    B) $60.25
    C) $60.75
    D) $63.25

    22. The book value per share of preferred stock is:
    A) $ 100
    B) $ 110
    C) $ 112
    D) $ 116

    © BrainMass Inc. brainmass.com June 4, 2020, 12:42 am ad1c9bdddf
    https://brainmass.com/business/accounting/354410

    Solution Preview

    Thank you and good luck in your studies and beyond!

    Cleveland Company reports the following information as of 12/31/2012:

    -10% cumulative preferred stock, par value
    $100, One-year of dividends in arrears; 20,000
    shares authorized; issued, 10,000 shares;
    $1,000,000 ...

    Solution Summary

    This classic problem illustrates how to find the book value of common and preferred stock.

    $2.19

    ADVERTISEMENT