All of these Screen shots are the same question..It has four seperate parts Prob

Question

All of these Screen shots are the same question..It has four seperate parts

Problem 11-2A The stockholders' equity accounts of Blue Spruce Corp. on January 1, 2017, were as follows. Preferred Stock (796, $100 par noncumulative, 4,100 shares authorized) Common Stock ($5 stated value, 295,000 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 (4,100 common shares) S246,000 1,229,166 12,300 472,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,750 shares of common stock for $28,500 Mar. 20 Purchased 1,200 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1 Nov. 1 Paid the dividend declared on October 1 Dec. 1 Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,500. Paid the dividend declared on December 1

Explanation / Answer

Ans1 Making entries which are red in color Date Accounts Title Dr Cr 1-Dec Cash Dividend 211976 Dividend Payable 211976 (249383*.85) No of common stock (1229166/5)+4750-1200 249383 31-Dec Retained Eranings (17220+211976) 229196 Cash dividend 229196 Dividend Payable 211976 Cash 211976 Ans 2 Retained Eranings 10/1 17220 1-Jan 685500    12/31 211976 2/1 276500 31-Dec 732804 Paid iN capital in excess f par-Common stock 1-Jan 472000 2/1 4750 12/31 476750 Cash Dividend 10/1 17220 12/31 229196 12/1 211976 12/31 0 Balance Sheet Stockholder Equity Paid in capital Capital Stck Preferred Stock 246000 Common stock 1252916 Total capital stock 1498916 Additional paid in capital Paid iN capital in excess of par-Preferred stock 12300 Paid iN capital in excess of par-Common stock 476750 Total Additional paid in capital 489050 Total paid in captal 1987966 Retained earnings 732804 Treasury stock 41200 Total stockholder Equity 2679570 ans 4 Payout ratio 0.77 211976/276500 Return on stockholder Equity 10.9 % (276500-17220)/Avg stockholder equity (276500-17220)/((1229166+472000+685500-32800+1252916+476750+732804-41200)/2)*100

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---