Q11DQ What is the difference between a... [FREE SOLUTION] (2024)

The following information is available for Amos Company for the year ended December 31, 2017.

a. Balance of retained earnings, December 31, 2016, prior to discovery of error, \(1,375,000.

b. Cash dividends declared and paid during 2017, \)43,000.

c. It forgot to record 2015 depreciation expense of \(55,500, which is net of \)4,500 in tax benefits.

d. The company earned $126,000 in 2017 net income.

Prepare a 2017 statement of retained earnings for Amos Company

Question:

The Commonsection of Cyril Corporation’s balance sheet shows the following:

Preferred stock—6% cumulative, \(25 par value,

10,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . \) 250,000

Common stock—\(8 par value, 100,000 shares

issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535,000

Total stockholders’ Common. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \)1,585,000

This year’s dividends on preferred stock have been paid. Determine the book value per share of common stock under two separate situations.

1. No preferred dividends are in arrears.

2. Three years of preferred dividends are in arrears.