Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders' equity accounts of Blue Spruce Corp. on January 1, 2025, were as follows. During 2025, the corporation had the following transactions and events

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The stockholders' equity accounts of Blue Spruce Corp. on January 1, 2025, were as follows. During 2025, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 13,000 shares of common stock for $78,000. Mar. 20 Purchased 2,600 additional shares of common treasury stock at $7 per share. Oct. 1 Declareda 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1 . Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15 , payable December 31,2 Dec. 31. Determined that net income for the year was $730,000. Paid the dividend declared on December 1 . Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Dividends Payable Nov, 1 Dividends Payable cash Cash Dividends: Dividends Payable Income Summary Retained Earnings (To close Income Summary and transfer net income to Retained Earnings) Retained Earnings Cash Dividends (To close Cash Dividends to Retained Earnings) Dividends Payable Retained Earnings (To close Income Summary and transfer net income to Retained Earnings) Retained Earnings Cash Dividends (To close Cash Dividends to Retained Earnings) Dec. 31 v Dividends Payable cash (To record payment of cash dividends payable) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Post entries in the order of journal entries recorded in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount on the normal side of the account.) Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Retained Earnings Cash Dividends Treasury Stock Prepare the stockholders' equity section of the balance sheet at December 31, 2025. (Enter account name only and do not provide descriptive information.) 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 answers to 2 decimal places for per unit and percentage, eg. 17.50 or 17.50%.) eTextbook and Media List of Accounts Attempts: 0 of 15 used

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

Audit To Love

Authors: Jezabel Lima

1st Edition

B0C2SG8JS7, 979-8988078807

More Books

Students also viewed these Accounting questions

Question

Describe the central limit theorem

Answered: 1 week ago

Question

2. What is the impact of information systems on organizations?

Answered: 1 week ago

Question

Evaluate the impact of technology on HR employee services.

Answered: 1 week ago