The stockholders' equity accounts of Flounder Corp. on January 1, 2017, were as follows. Preferred Stock ( 796, $ 100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $ 300,000 1,000,000 15,000 480,000 693,000 40,000 During 2017,the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Mar. 20 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Issued 5,000 shares of common stock for $ 30,000. Purchased 1,000 additional shares of common treasury stock at $ 8 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Paid the dividend dcclared on October 1 Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31,2017. Determined that net income for the year was $ 285,000. Paid the dividend declared on December 1. -Your answer is partially correct. 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 O decimal places, eg.5,275.) Date Account Titles and Explanation Debit Credit Feb. 1 v Cash 30000 Common Stock 20000 Paid-in Capital in Excess of Stated Valuc-Common Stock 10000 Mar. 20 v Treasury Stock 1,000 Cash 1,000 Oct. 1 v Cash Dividends 21000 Dividends Payable 21000 Nov. 1 v Dividends Payable 21000 Cash 21000 Dec. 1 Cash Dividends 170800 Dividends Payable 170800 Dec. 31 Income Summary 285,000 Retained Earnings 285,000 To record net income) Dec. 31 Rctained Earnings 306000 Cash Dividends 306000 (To close cash dividends) Dec. 1 Dividends Payable 170800 Cash 170800 (To record payment of cash dividends payable) Textbook and Media List of Accounts Your answer is partially correct. - 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) Preferred Stock 12/31 Bal.' Common Stock 1/1 Ba 1000000 20000 12/31 Bal.' Paid-in Capital in Excess of Par Value-Preferred Stock 1/1 Bal 15000 12/31Bal. 15000 Paid-in Capital in Excess of Stated Value-Common Stock 1/1 Ba 480000 5000 12/31 Bal. 485000 Retained Earnings 1/1 Bal. 688000 12/31 12/31Bal. Cash Dividends 10/1 21000 12/1 170800 12/31 * 191800 Treasury Stock 1/1 Ba 7 3/20 7000 12/31 Bal. 47000 eTextbook and Media List of Accounts Your answer is partially correct. - Prepare the stockholders' equity section of the balance sheet at December 31, 2017 FLOUNDER CORP Partial Balance Sheet December 31,2017 Stockholders' Equity Paid-in Capital Capital Stock Common Stock 1020000 Preferred Stock 300000 Total Capital Stock 1320000 Additional Paid-in Capital Paid-in Capital in Excess of Stated Value-Common Stock 490000 Paid-in Capital in Excess of Par Value-Preferred Stock 15000 Total Additional Paid-in Capital 505000 Total Paid-in Capital 1825000 Retained Earnings 822500 Total Pald-in Capital and Retained Earnings 2647500 Less 47000 Treasury Stock Total Stockholders' Equity 260050O eTextbook and Media List of Accounts Your answer is partially correct. - Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round earning per share to 2 decimal places, eg. $2.66 and all other answers to 1 decimal place. 17.5%) Payout ratio Earnings per share Return on common stockholders' equity 445 | % 1.05 1.05 | % eTextbook and Media List of Accounts
