1.

Journalize

DebbDebb's

transactions for

20192019.

2.

Prepare the stockholders' equity section of the balance sheet as of December 31,

20192019.

Assume

DebbDebb

had net income of

$ 10 comma 000 comma 000$10,000,000

during

20192019

and that Cash Dividends and Stock Dividends have been closed to the Retained Earnings account.

3.

Determine

DebbDebb's

earnings per share for

20192019.

4.

Assuming

DebbDebb's

market value per common share as of December 31,

20192019,

was

$ 29$29,

calculate

DebbDebb's

price/earnings ratio for

20192019.

Jan.	1		Issued 80 comma 00080,000 shares of common stock for $ 17$17 per share.
Feb.	15		Issued 11 comma 00011,000 shares of common stock for $ 14$14 per share.
Mar.	1		Declared a $ 0.80$0.80 per share cash dividend on its common stock to be paid on March 30. Date of record: March 15.
	30		Paid the cash dividend to stockholders.
Nov.	1		Declared a 55% common stock dividend on all common stock outstanding. Current market price of the stock was $ 15$15. Date of record: Nov. 15.
	30		Distributed stock to stockholders.
Dec.	1		Purchased 8 comma 0008,000 shares of treasury stocklong dashcommon at $ 21$21 per share.
	20		Sold 7 comma 0007,000 shares of treasury stocklong dashcommon at $ 26$26 per share.

Balance Sheet

Debb Corporation

Balance Sheet (Partial)

December 31, 2018

Stockholders' Equity

Paid-In Capital:

Common Stock$2 Par Value; 10,000,000 shares

authorized, 1,000,000 shares issued and outstanding

$2,000,000

Paid-In Capital in Excess of ParCommon

800,000

Total Paid-In Capital

2,800,000

Retained Earnings

120,000,000

Total Stockholders' Equity

$122,800,000