The stockholders' equity accounts ofBlue Spruce Corp.on January 1, 2022, were as follows.

Preferred Stock (7%, $100par noncumulative,3,500shares authorized)$210,000Common Stock ($4stated value,210,000shares authorized)700,000Paid-in Capital in Excess of Par ValuePreferred Stock10,500Paid-in Capital in Excess of Stated ValueCommon Stock336,000Retained Earnings481,600Treasury Stock (3,500common shares)28,000

During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb.1Issued3,500shares of common stock for $21,000.Mar.20Purchased700additional shares of common treasury stock at $7per share.Oct.1Declared a7% cash dividend on preferred stock, payable November 1.Nov.1Paid the dividend declared on October 1.Dec.1Declared a $0.50per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.Dec.31Determined that net income for the year was $195,000. 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

Feb. 1

Mar. 20

Oct. 1

Nov. 1

Dec. 1

Dec. 31

enter an account title

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.

BLUE SPRUCE CORP.

Partial Balance Sheet

choose the accounting period

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, e.g 17.50%.)