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Problem 11-8A On January 1, 2017, Tacoma Corporation had these stockholders? equity accounts. Common Stock ($10par value,70,000shares issued and outstanding) $700,000 Paid-in Capital in Excess
Problem 11-8A
On January 1, 2017, Tacoma Corporation had these stockholders? equity accounts.
| Common Stock ($10par value,70,000shares issued and outstanding) | $700,000 |
| Paid-in Capital in Excess of Par Value | 500,000 |
| Retained Earnings | 620,000 |
During the year, the following transactions occurred.
| Jan. | 15 | Declared a $0.50cash dividend per share to stockholders of record on January 31, payable February 15. |
| Feb. | 15 | Paid the dividend declared in January. |
| Apr. | 15 | Declared a10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14per share. |
| May | 15 | Issued the shares for the stock dividend. |
| Dec. | 1 | Declared a $0.60per share cash dividend to stockholders of record on December 15, payable January 10, 2018. |
| Dec. | 31 | Determined that net income for the year was $400,000. |
| Date | Account Titles and Explanation | Debit | Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (To close net income) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (To close stock dividends) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (To close cash dividends) |
|
Problem 11-31! On January 1, 2017, TBCUI'I'IB Corpomtion had these stockholders' equity,r accounts. Common Stock {$10 par value, 3"0,000 sharia issued and outstanding) $?00,000 Paid-in Capital in Excess of Par 1I.ialue 500,000 Retained Eamlngs 620,000 Durlng the year, the following transactions occurred. Jan. 15 Feb. 15 Apr. 15 Mary 15 Der. 1 Dec. 31 Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable Febmary 15. Paid the dividend declared in January. Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15Ir the market price of the shock was $14 per share. Issued the sham for the stock dividend. Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2013. Determined that net income for the year was $400,000. Jaurnalize the transactions. [Include entries to clase net inmme and dividends to Retained Earnings.} (Renard en are automatically indented when amount is entered. Do not Indent manuay. Ifnn entry ts required, 51 Date Account Title: and Explanation Debit Credit :: Z: :: :I:I : Z: Z Z: Z Z: : Z: Z Z: : Z: Z Z: : Z: Z E: [To dnse net Income) \fEnter the heginnlng balances and pest the entries tn the steekhelders' equltyr T-ecceunts. [PI zen: ending t:a.l'am:eJr the entry:r sheufa' he the balance date and zere fer the ameunt. Cum men Stuck :3:3 :3:3 :3:3 Retained Earnings :3:3 :3L:3 :3:3 Paid-in Capital in Excess ef Far 1'alue :3:3 :3:3 C3C3 Calculate the payout ratio and return on common stodd'mlders' equity. {Round answers to 1 decimal place, e4. 12.5%.} mama :% Return an COI'I'II'I'IUI'I stuckhulders' enmity:I :l 96
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Accounting Information Systems
Authors: Cynthia D Heagy, Constance M Lehmann
7th Edition
1111219516, 978-1111219512
