Problem 8 4 The stockholders equity accounts of Sheffield Corp on January 1, 2017, were as follows Preferred Stock (7 , $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid in Capital in Excess of Par ValuePreferred Stock 15,000 Paid in Capital in Excess of Stated ValueCommon Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders equity Feb 1 Issued 5,000 shares of common stock for $30,000 Mar 20 Purchased 1,000 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 85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec 31 Paid the dividend declared on December 1 Your answer is partially correct Try again (a) Prepare a tabular summary that includes the January 1, 2017, balances Do not include the beginning balance in Retained Earnings in the tabular summary (b) Record the 2017 transactions in the tabular summary Prepare the stockholders equity section of the balance sheet at December 31, 2017 Include 2017 net income of $255,600 as an increase to the January 1, 2017, Retained Earnings Calculate the payout ratio, earnings per share, and return on common stockholders equity (Note Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding ) (Round earning per share to 2 decimal places, e g $2 66 and all other answers to 1 decimal place 17 5 )

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Problem 8-4 The stockholders equity accounts of Sheffield Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized)

Problem 8-4

The stockholders equity accounts of Sheffield Corp. on January 1, 2017, were as follows.

Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized)		$300,000
Common Stock ($4 stated value, 300,000 shares authorized)		1,000,000
Paid-in Capital in Excess of Par ValuePreferred Stock		15,000
Paid-in Capital in Excess of Stated ValueCommon Stock		480,000
Retained Earnings		688,000
Treasury Stock (5,000 common shares)		40,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders equity.

Feb.	1	Issued 5,000 shares of common stock for $30,000.
Mar.	20	Purchased 1,000 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 $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.
Dec.	31	Paid the dividend declared on December 1.


	Your answer is partially correct. Try again.

(a)		Prepare a tabular summary that includes the January 1, 2017, balances. Do not include the beginning balance in Retained Earnings in the tabular summary.
(b)		Record the 2017 transactions in the tabular summary.

Prepare the stockholders equity section of the balance sheet at December 31, 2017. Include 2017 net income of $255,600 as an increase to the January 1, 2017, Retained Earnings.

Calculate the payout ratio, earnings per share, and return on common stockholders equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)