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exercise 2 Given the following data for 2014: 50000:2000 = 2, 25

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exercise 2 Given the following data for 2014: 50000:2000 = 2, 25.1000-2500 Common stock Preferred stock, 10% Paid-in capital in excess of par + Retained earnings (opening balance, credit) Cash dividends distributed in 2014 - Treasury shares Net loss for the year Preferred dividends in arrears Common stock issued Common stock outstanding Preferred stock issued and outstanding €50,000 €16,000 €220.000 €65,000 €8,500 - €4,800 €12,000 €2,000 20,000 shares 19,000 shares 4,000 shares 52.500 Required: 1. Prepare the shareholder's equity section of the balance sheet; 2. Determine the total paid-in capital; 3. Calculate the par value per share of common stock and preferred stock; 4. Calculate the book value per share of common stock and preferred stock. 5. In 2015 the company distributed a cash dividend of €4,500 and issued 1,000 shares of common stock to acquire a patent with a market value of €6,300. Journalize the transactions (differentiating between dividends to common and preferred shareholders) and calculate the updated book values per share of common and preferred stock.