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The stockholders' equity accounts of Indigo Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 10,000 shares authorized) Common Stock
The stockholders' equity accounts of Indigo Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 10,000 shares authorized) Common Stock ($4 stated value, 600.000 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 (10,000 common shares) $600,000 2,000,000 30,000 960,000 1,376,000 80.000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Mar. 20 Oct. 1 Nov. 1 Issued 10,000 shares of common stock for $60,000. Purchased 2,000 additional shares of common treasury stock at $7 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Paid the dividend declared on October 1. Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Determined that net income for the year was $550,000. Paid the dividend declared on December 1. Dec. 1 Dec. 31 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.) Preferred Stock 1/1 Bal. 12/31 Bal. Common Stock 1/1 Bal. V 2/1 40000 12/31 Bal. Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value Common Stock Retained Earnings V Cash Dividends Treasury Stock Partial Balance Sheet For the Month Ended December 31, 2017 Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock $ Common Stock Total Capital Stock $ Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Total Additional Paid-in Capital Total Paid-in Capital Retained Earnings funn Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity $ $ Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.) Payout ratio Earnings per share $ Return on common stockholders' equity %
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