Problem 11-2A The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $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 15,000 480,000 689,000 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Mar. 20 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Issued 5,000 shares of common stock for $35,000. Purchased 1,000 additional shares of common treasury stock at $7 per share. Declared a 8% cash dividend on preferred stock, payable November 1. Paid the dividend declared on October 1. Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Determined that net income for the year was $275,600. Paid the dividend declared on December 1. 35000 Common Stock 20000 Paid-in Capital in Excess of Stated Value-Commor 15000 Mar. 20 Treasury Stock I Cash 7000 Oct. 1 Cash Dividends 24000 Dividends Payable T 24000 Nov. 1 AN Dividends Payable 24000 Cash 24000 Dec. 1 A JTCash Dividends 21675 X Dividends Payable 21675 Dec. 31 4 J Income Summary 75600 Retained Earnings 275600 Retained Earnings 275600 (To record net income) Dec. 31 Retained Earnings 753 Cash Dividends 456751 (To close cash dividends) Dec. 31 9 TDividends Payable 21675 IIIIIIIIIIIIIIIIII Cash 21675 (To record payment of cash dividends payable) Retained Earnings X 712/31 12/31 45675 1/1 Bal. 689000 7 12/31 12/31 275600 12/31 Bal. 918925 IIIIIIIIIIIIIIII Cash Dividends 10/1 240001 12/31 5675 12/ 21675 12/31 Bal. A 71011 D 1712/1 712/31 bal. : 1/1 Bal. iki 3/20 12/31 Bal. : 24000 12/31 216752 2 4000 7000 110002 Treasury Stock 3/20 10 12/31 Bal. A 11000 SWIFTY CORPORATION Partial Balance Sheet December 31, 2017 Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock 300000 Common Stock 1020000 Total Capital Stock 1320000 Additional Paid-in Capital Paid-in Capital in Excess of Stated Value-Commor T 495000 Paid-in Capital in Excess of Par Value-Preferred St 15000 Total Additional Paid-in Capital 510000 Total Paid-in Capital 1830000 X Retained Earnings 918925 CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT T Total Paid-in Capital and Retained Earnings + XL LLLL 22389258 x Less Treasury Stock ............. 11000 T Total Stockholders' Equity SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Your answer is incorrect. Try again. 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 18.0 Earnings per share 10.70 X Return on common stockholders' equity