Question
Problem 11-8A On January 1, 2014, Everett Corporation had these stockholders equity accounts. Common Stock ($10 par value, 80,200 shares issued and outstanding) $802,000 Paid-in
Problem 11-8A On January 1, 2014, Everett Corporation had these stockholders equity accounts. Common Stock ($10 par value, 80,200 shares issued and outstanding) $802,000 Paid-in Capital in Excess of Par Value 509,100 Retained Earnings 675,700 During the year, the following transactions occurred. Jan. 15 Declared a $0.50 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 $13 per share. May 15 Issued the shares for the stock dividend. Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2015. Dec. 31 Determined that net income for the year was $374,200. 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 close net income) (To close stock dividends) (To close cash dividends) SHOW LIST OF ACCOUNTS LINK TO TEXT Enter the beginning balances and post the entries to the stockholders equity T-accounts. (Post entries in the order of journal entries posted in the previous part) Common Stock Retained Earnings Paid-in Capital in Excess of Par Value Cash Dividends Common Stock Dividends Distributable Stock Dividends SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the stockholders equity section of the balance sheet at December 31. EVERETT CORPORATION Partial Balance Sheet December 31, 2014 $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the payout ratio and return on common stockholders equity. (Round answers to 1 decimal place, e.g. 12.5%.) Payout ratio % Return on common stockholders equity
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