Kras, Inc., was organized ad authorized to issue 50,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no-par, $5 stated value common stock on jul 1, 2011. Stock-related transactions for Kras are as follows:

July 1 Issused 10,000 shares of common stock at $11 per share.

July 1 Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company.

July 2 Issued 1,000 shares of preferred stock at par values for cash.

July 10 Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record the land at the market value of the stock

Aug 2 Purchased 1,500 shares f its common stock at $13 per share.

Aug 10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding

Aug 12 Date of record for cash dividends

Aug 22 Paid cash dividends

REQUIRED

1. Record the transactions in journal form.

2. prepare the stocholder's equity section of the balance sheet as it would appear on August 31, 2011. Net income for july was zero and August was $11,500

3. Calculate dividends yield, price/earnings ratio, and return on equity. Assume earnings per common share are $1.00 and market price per cmmon share is $20. For begining stockholders' equity, use the balance adter the July transactions.

4. Discuss the results in requirement 3, including the effect on investers' retuns and the company's profitability as it relates to stockholder's equity