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ACC 291 Wiley PLUS Week 4 Assignment Problem P11-8A

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ACC 291 Wiley PLUS Week 4 Assignment Problem P11-8A
Correct.
The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath
Corporation at December 31, 2011.
Common Stock ($10 stated value) $1,500,000
Paid-in Capital from Treasury Stock 6,000
Paid-in Capital in Excess of Stated Value-Common Stock 690,000
Paid-in Capital in Excess of Par Value-Preferred Stock 288,400
Preferred Stock (8%, $100 par, noncumulative) 400,000
Retained Earnings 776,000
Treasury Stock-Common (8,000 shares) 88,000
Complete the stockholders' equity section at December 31, 2011. (List entries by the format
used in the text. Enter all amounts as positive amounts and subtract where necessary.)
MCGRATH CORPORATION
Stockholders' equity
Paid-in capital
Capital stock
8% Preferred stock,
$ 100 par noncumulative
4000 shares issued and outstanding $ 400,000
Common stock,no par,
$ 10 stated value,
150,000 shares issued and
142,000 outstanding
1,500,000
Total capital stock 1,900,000
Additional paid-in capital
In excess of par value-preferred stock $ 288,400
In excess of stated value-common stock 690,000
From treasury stock
6,000
Total additional paid-in capital
984,400
Total paid-in capital 2,884,400

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Retained earnings
776,000
Total paid-in capital and retained earnings 3,660,400
Less: Treasury stock
88,000
Total stockholders' equity
$ 3,572,400
Compute the book value per share of the common stock, assuming the preferred stock has a call
price of $110 per share. (Round answer to 2 decimal places, e.g. 10.50.)
$ 22.06
Total stockholders' equity $3,572,400
Less: Preferred stock equity
Call prince ($110 × 4,000)
440,000
Common stock equity
$3,132,400
Common shares outstanding
142,000
Book value per share ($3,132,400 ÷ 142,000)
$22.06

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