Maarij Khan BBA 2

QUESTION NO 1 PART A

MR.AZMAT
COMPUTATION OF CAPITAL AT END AND
ACCOUNTS TITLE JANUARY 1ST,2018

ADD: ASSETS

Cash 100,000.00
Cash at Bank nil
Accounts Receivable nil
Merchandise Inventory nil
Office Equipment. nil
Furniture nil
Un-Expired Insurance nil

TOTAL ASSETS 100,000.00

LESS: LIABILITIES

Accounts Payable nil

TOTAL LIABILITIES nil

CAPITAL 100,000.00
AT END AND AT START
Y 1ST,2018 DECEMBER 31ST,2018

nil
25,500.00
55,000.00
40,000.00
60,000.00
30,000.00
2,500.00

213,000.00

(39,000.00)

(39,000.00)

174,000.00
QUESTION NO 1 PART B

MR. AZMAT
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31ST,20

Capital at End

ADD: Drawing

LESS: Additional Investment

LESS: Capital at Start

Unadjusted Profit

LESS: Operating Expenses:

Zakaat Expense
Insurance Expense
Depreciation Expense ( Furniture 20%)
Depreciation Expense (Office Equipment 10%)

Total Operating Expense

ADD: Additional Income

Dividend Income

NET PROFIT
AT
FIT AND LOSS
CEMBER 31ST,2018
AMOUNT

174,000.00

30,000.00
204,000.00
(25,000.00)
(100,000.00)

79,000.00

750.00
1,250.00
6,000.00
6,000.00

(14,000.00)

1,200.00
66,200.00

66,200.00
QUESTION 1 PART C

MR.AZMAT
BALANCE SHEET
AS ON DECEMBER 31ST,

ASSETS

CURRENT ASSETS

Cash at Bank 25,500.00

Accounts Receivables 55,000.00
Merchandise Inventory 40,000.00
Un-Expired Insurance 2,500.00
Dividend Income 1,200.00

TOTAL CURRENT ASSETS 124,200.00

FIXED ASSETS

Office Equipment 60,000.00

LESS: Accumulated Depreciation 10% (6,000.00)

Book Value Of Office Equipment 54,000.00

Furniture 30,000.00
LESS: Accumulated Depreciation 20% (6,000.00)

Book Value Of Furniture 24,000.00

TOTAL FIXED ASSETS 78,000.00

TOTAL ASSETS 202,200.00

MR.AZMAT
LANCE SHEET
CEMBER 31ST, 2018

EQUITIES

LIABILITIES

Accounts Payable 39,000.00

Insurance Payable 1,250.00
Zakaat Payable 750.00

TOTAL LIABILITIES 41,000.00

OWNER'S EQUITY

Capital at Start 100,000.00

ADD: Additional Investment 25,000.00

LESS: Drawings (30,000.00)
ADD: Net Profit 66,200.00

ADJUSTED CAPITAL 161,200.00

TOTAL EQUITIES 202,200.00

QUESTION NO 2

PART A:
How many shares of Preferred Stock have been issued?

Issued shares of Preferred Stock = 240,000.00

PART B :
What is the total amount of the annual dividends paid to the preferred stockholders?

Dividended per share of preferred stock

No. of shares of preferred stock outstanding
Annual preferred stock dividend requirement

PART C:
What is the total amount of paid-in Capital?

TOTAL PAID-IN CAPITAL = TOTAL STOCKHOLDER'S EQUITY - RETAINED EARNING

Total Stockholder's Equity = 48000000 + 5260000 + 72340000 + 47240000
Total Stockholder's Equity = 172,840,000.00

Retained Earning= 47,240,000.00

Total Paid-in Capital 125,600,000.00

PART D:
What is the book value per share of Common stock?

BOOK VALUE PER SHARE = TOTAL EQUITY - PREFERRED SHARE

TOTAL SHARE OUTSTANDIN

Book Value Per Share = 172,840,000 - 48,000,000

(5260000/2)
 Book Value Per Share= $47.468 per share

PART E:
What is the book value per share of Preferred Stock?

BOOK VALUE PER PREFERRED STOCK = CALL PRICE - DIVIDEND IN ARREARS

NO. OF PREFERRED SHARES

Book Value per Preferred Stock = ( 200 * 24000 ) - 0

24000

Book Value per Preferred Stock = $200

PART F :
Prepare the Shareholder Equity

SHAREHOLDER'S EQUITY

Contributed Capital :
Preferred Stock - No par Value ; 1,000,000 shares authorized ; 240,000 shares isu
Common Stock - Par Value $2 ; 50,000,000 shares authorized
Additional Paid up Capital
Total Paid Up Capital
Contributed Capital in excess of Par
Reatined Earning
LESS: Treasury Stock

TOTAL SHAREHOLDER'S EQUITY

preferred stockholders?

$12
240,000.00
240,000 * 12
2,880,000.00

DER'S EQUITY - RETAINED EARNING

000 + 72340000 + 47240000

REFERRED SHARE
TOTAL SHARE OUTSTANDING
DEND IN ARREARS

SHAREHOLDER'S EQUITY

ares authorized ; 240,000 shares isuued and Outstanding 48,000.00

ares authorized 5,260.00
72,340.00
125,600.00
-
47,240.00
-

172,840.00