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I am Stuck on Part D.. Please help.. Thanks Problem 8-4 (Part Level Submission) The stockholders' equity accounts of Culver Corporation on January 1, 2017,
I am Stuck on Part D.. Please help..
Thanks
Problem 8-4 (Part Level Submission) The stockholders' equity accounts of Culver Corporation on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 694,500 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,000 shares of common stock for $35,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $9 per share. Oct. 1 Declared a 6% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Paid the dividend declared on December 1. (a)-(b) Your answer is correct. (a) Prepare a tabular summary that includes the January 1, 2017, balances. Do not include the beginning balance in Retained Earnings in the tabular summary. (b) Record the 2017 transactions in the tabular summary. (Round answers to o decimal places, e.g. 5,275. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Paid-in-Capital Retained Earnings Cash = Div. Pay. + Common Stock + PIC in Excess of Stated Value Com. + PIC in Excess of Par Value Pref. Treasury Stock + Revenue - Expense - Dividend Pref. Stock + 300,000 10 1,000,000 480,000 15,000 -40,000 (b) Feb. 1 T 35,000 T 20,000 Mar. 20T -9,000 -9,000 Oct. 1 18,000 T -18,000 Nov. 1 -18,000 T -18,000 Dec.) 211,650 T -211,650 T -211,650 T -211,650 Prepare the stockholders' equity section of the balance sheet at December 31, 2017. Include 2017 net income of $288,900 as an increase to the January 1, 2017, Retained Earnings. CULVER CORPORATION Partial Balance Sheet December 31, 2017 Stockholders' Equity Paid-in Capital Capital Stock | Preferred Stock 300,000 Common Stock | 1,020,000 Total Capital Stock 1,320,000 Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred St 15,000 Paid-in Capital in Excess of Stated Value-Common 495,000 | Total Additional Paid-in Capital 510,000 T Total Paid-in Capital 1,830,000 | Retained Earnings 753,750 Total Paid-in Capital and Retained Earnings 2,583,750 Treasury Stock 49,000 1 Total Stockholders' Equity 2,534,750 (d) Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.) Payout ratio % Earnings per share Return on common stockholders' equityStep by Step Solution
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