*Problem 11-2A

The stockholders equity accounts of Miley Corporation on January 1, 2014, were as follows.

Preferred Stock (7%, $100 par noncumulative, 4,700 shares authorized) $282,000 Common Stock ($3 stated value, 328,000 shares authorized) 787,200 Paid-in Capital in Excess of Par ValuePreferred Stock 11,280 Paid-in Capital in Excess of Stated ValueCommon Stock 262,400 Retained Earnings 689,700 Treasury Stock(4,700 common shares) 37,600

During 2014, the corporation had the following transactions and events pertaining to its stockholders equity.

Feb. 1 Issued 4,600 shares of common stock for $27,600. Mar. 20 Purchased 1,470 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. Dec. 31 Determined that net income for the year was $281,000. Paid the dividend declared on December 1.

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Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit (To record net income)

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Enter the beginning balances in the accounts and post the journal entries to the stockholders equity accounts. (Post entries in the order of journal entries posted in the previous part.)

Preferred Stock Common Stock Paid-in Capital in Excess of Par ValuePreferred Stock Paid-in Capital in Excess of Stated ValueCommon Stock Retained Earnings Cash Dividends Treasury Stock

Prepare the stockholders equity section of the balance sheet at December 31, 2014.

MILEY CORPORATION Partial Balance Sheet December 31, 2014

Calculate the payout ratio, earnings per share, and return on common stockholders equity. (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