FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:1. The balance sheet of Quetico Inc. reported the following at December 31,
2020:
A
Shareholders' Equity
B
C
Preferred shares, $0.40, 10,000 shares authorized
2
and issued
$ 100,000
3
Common shares, 100,000 shares authorized*
400,000
45
Accumulated other comprehensive income
Retained earnings
224,000
476,500
6
Total shareholders' equity
7
$ 1,200,500
*The common shares were issued at a stated value of $8.00 per share.
Requirements
a. Are the preferred shares cumulative or non-cumulative? How can
you tell?
b. What is the total amount of the annual preferred dividend?
c. How many common shares are outstanding?
d. Compute the book value per share of the common shares. No
preferred dividends are in arrears, and Quetico Inc. has not yet
declared the 2020 dividend..
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