Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SOURCES Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Culver Corporation on January 1, 2017, were as follows. Preferred Stock (6%, $100 par

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
SOURCES Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Culver Corporation on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorised) 1,000,000 Pald-in Capital in Excess of Par Value-Preferred Stock 15,000 Pald-in Capital in Excess of stated Value-Common Stock 480,000 Retained Earnings 694,500 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 $35.000 Mar. 20 Purchased 1,000 additional shares of common treasury stock at $9 per share. Oct Declared a 6% cash dividend on preferred stock, payable November 1 Nov. 1 Paid the dividend declared on October 1 ber. Declared a $0,65 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,400. Paid the dividend declared on December 1 1 (d) Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round place. 17.5%.) % Payout ratio Earnings per share % Return on common stockholders' equity Click if you would like to Show Work for this question: Open Show Work Feb. 1 Cash 35000 Common Stock 20,000 Paid-in Capital in Excess of Stated Value-Commor 15,000 Mar. 20 v Treasury Stock 9,000 Cash 9,000 Oct. 1 Cash Dividends 18,000 Dividends Payable 18,000 Nov. 1 Dividends Payable 18000 18000 Cash 211650 Cash Dividends Dec. 1 Dividends Payable 211650 276400 Income Summary Dec. 31 276400 Retained Earnings ant Gradebook ORION Downloadable Textbook CALCULATOR TULLS CUTII Dividends Payable 211650 Dec. 31 Income Summary 276400 276400 Retained Earnings (To record net income) Dec. 31 Retained Earnings 2296501 229650 Cash Dividends (To close cash dividends) Dividends Payable 211650) Dec. 31 EILULING CERIMO 12/31 229650 1/1 Bal. 694,500 > 12/31 276,400 12/31 Bal. 741,250 Cash Dividends > 10/1 18,000 12/31 Bal 211650 12/1 211,650 12/31 Bal. 0 Treasury Stock 1/1 Bal. 40,000 DIT DIE 3/20 9,000 12/31 Bal. 49,000 Click if you would like to cha

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: E.J. Mishan, Euston Quah

6th Edition

1138492752, 978-1138492752

More Books

Students also viewed these Accounting questions