The following account balances were selected from the records of beverage maker Blake Corporation at December 31,

Question:

The following account balances were selected from the records of beverage maker Blake at December 31, 2013, after all adjusting entries were completed:
Common stock (par $15; authorized 100,000 shares, issued 35,000 shares,
of which 1,000 shares are held as treasury stock) ..................................... $525,000
Additional paid-in capital-common stock ............................................. 180,000
Dividends declared and paid in 2013 ...................................................... 28,000
Retained earnings, January 1, 2013 ......................................................... 76,000
Treasury stock at cost (1,000 shares) ...................................................... 20,000
Net income for the year was $48,000.
Required:
1. Prepare the statement of retained earnings for the year ended December 31, 2013, and the stockholders' equity section of the at December 31, 2013.
2. Determine the number of shares of stock that received dividends.
3. Compute the ROE ratio for 2013, assuming total stockholders' equity was $629,000 on
December 31, 2012. How does it compare to the 2010 and 2011 ratios shown in Exhibit 11.7?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...