On January 1, 2017, Martinez Corp. had these stockholders equity accounts.

Common Stock ($10 par value, 72,500 shares issued and outstanding)		$725,000
Paid-in Capital in Excess of Par Value		522,000
Retained Earnings		670,000

During the year, the following transactions occurred.

Jan.	15		Declared a $0.70 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb.	15		Paid the dividend declared in January.
Apr.	15		Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $16 per share.
May	15		Issued the shares for the stock dividend.
Dec.	1		Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2018.
Dec.	31		Determined that net income for the year was $444,000.

1.)Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)

2.)Enter the beginning balances and post the entries to the stockholders equity T-accounts.

3.)Prepare the stockholders equity section of the balance sheet at December 31.

4.)Calculate the payout ratio and return on common stockholders equity.