Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders' equity accounts of Flounder Corp. on January 1, 2022, were as follows. During 2022, the corporation had the following transactions and events pertaining

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 Flounder Corp. on January 1, 2022, were as follows. During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 7,500 shares of common stock for $45,000. Mar, 20 Purchased 1,500 additional shares of common treasury stock at $7 per share. Oct. 1 Declareda 7% cash dividend on preferred stock, payable November 1. Nov. 1 Pald the dividend declared on October 1. Dec: 1 Declareda $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 $420,000. 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. Round answers to 0 decimal places, e. 8.5,275. . 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 posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Prepare the stockholders' equity section of the balance sheet at December 31,2022. 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, eg. 15.25.) Payout ratio Earnings pershare Return on common stockholders' equity %

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

Clinical Audit In Physiotherapy From Theory Into Practice

Authors: Sue Barnard MSc MCSP, Gayle Hartigan

1st Edition

075063779X, 978-0750637794

More Books

Students also viewed these Accounting questions

Question

What attracts you about this role?

Answered: 1 week ago

Question

How many states in India?

Answered: 1 week ago

Question

HOW IS MARKETING CHANGING WITH ARTIFITIAL INTELIGENCE

Answered: 1 week ago

Question

How We Listen?

Answered: 1 week ago