The stockholders’ equity section of Montel Company’s balance sheet follows. No preferred dividends are in arrears at the current date. Determine the book value per share of the common stock. Preferred stock—5% cumulative, $10 par value, 20,000 shares authorized, issued, and outstanding . $ 200,000 Common stock—$5 par value, 200,000 shares authorized, 150,000 shares issued and outstanding 750,000 Retained earnings 900,000 Total stockholders’ equity . $1,850,000

College Accounting, Chapters 1-27
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Author:HEINTZ, James A.
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Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEA: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity...
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The stockholders’ equity section of Montel Company’s balance sheet follows. No preferred dividends are
in arrears at the current date. Determine the book value per share of the common stock. Preferred stock—5% cumulative, $10 par value, 20,000 shares authorized, issued, and outstanding . $ 200,000
Common stock—$5 par value, 200,000 shares authorized, 150,000 shares issued and outstanding 750,000
Retained earnings 900,000
Total stockholders’ equity . $1,850,000

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