Compute the following:5. Assuming that on July 1, 2020, Kangaroo Company purchased its own share atP10.00. How much is the book value per share for the year 2020?6. Assuming that there is a cumulative and participating preference share, how thiswill affect the book value per share computation? Explain briefly. Problem 1The balance sheet of Kangaroo Company as of December 31 is presented below:AssetsCashMarketable Securities20192020Accounts Receivable (net)InventoryProperty, Plant and EquipmentAccumulated DepreciationTotal AssetsP 45,00060,00060,00070,000300,000(45,000)P490,000P 60,00085,00080,000100,000300,000(80,000)P545,000Liabilities and Shareholder's EquityAccounts PayableShort-term Notes PayableBonds PayableOrdinary SharesRetained EarningsTotal Liabilities and Shareholder's Equity35,00050,00085,000200,000120,000P490,00045,00050,00075,000225,000150,000P545,000Ordinary shares have par value of P5.00 per share. In April 1, 2020, the KangarooCompany issued additional shares as part of its funding plan.

SOLUTION- BOOK VALUE PER SHARE = EQUITY AVAILABLE TO COMMON SHAREHOLDERS / NUMBER OF OUTSTANDING…

Problem 1 The balance sheet of Kangaroo Company as of December 31 is presented below: 2020 P 60,000 85,000 80,000 100,000 300,000 (80,000) P545,000 Assets Cash Marketable Securities Accounts Receivable (net) Inventory Property, Plant and Equipment Accumulated Depreciation 2019 P 45,000 60,000 60,000 70,000 300,000 (45,000) P490,000 Total Assets Liabilities and Shareholder's Equity Accounts Payable Short-term Notes Payable Bonds Payable Ordinary Shares Retained Earnings Total Liabilities and Shareholder's Equity 35,000 50,000 85,000 200,000 120,000 P490,000 45,000 50,000 75,000 225,000 150,000 P545,000 Ordinary shares have par value of P5.00 per share. In April 1, 2020, the Kangaroo Company issued additional shares as part of its funding plan.

Problem 1 The balance sheet of Kangaroo Company as of December 31 is presented below: 2020 P 60,000 85,000 80,000 100,000 300,000 (80,000) P545,000 Assets Cash Marketable Securities Accounts Receivable (net) Inventory Property, Plant and Equipment Accumulated Depreciation 2019 P 45,000 60,000 60,000 70,000 300,000 (45,000) P490,000 Total Assets Liabilities and Shareholder's Equity Accounts Payable Short-term Notes Payable Bonds Payable Ordinary Shares Retained Earnings Total Liabilities and Shareholder's Equity 35,000 50,000 85,000 200,000 120,000 P490,000 45,000 50,000 75,000 225,000 150,000 P545,000 Ordinary shares have par value of P5.00 per share. In April 1, 2020, the Kangaroo Company issued additional shares as part of its funding plan.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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