Question
The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed: Common stock
The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed: |
Common stock (par $15; authorized 100,000 shares, issued 26,000 shares, of which 1,100 shares are held as treasury stock) | $ | 390,000 | |
Additional paid-in capitalcommon stock | 171,000 | ||
Dividends | 19,000 | ||
Retained earnings, beginning of year | 67,000 | ||
Treasury stock at cost (1,100 shares) | 22,000 | ||
|
Net income for the year was $34,500. |
Required: |
1-a. | Prepare the statement of retained earnings for the year ended December 31. |
1-b. | Prepare the stockholders equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.) |
2. | Determine the number of shares of stock that received dividends. |
3. | Compute the ROE ratio for the current year, assuming total stockholders equity was $620,000 on December 31 of the previous year. (Round your answer to 1 decimal place.) |
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