The following account balances were selected from the records of beverage maker
ID: 2576108 • Letter: T
Question
The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed:
Prepare the statement of retained earnings for the year ended December 31.
Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)
Determine the number of shares of stock that received dividends.
Compute the ROE ratio for the current year, assuming total stockholders’ equity was $638,000 on December 31 of the previous year. (Round your answer to 1 decimal place.)
The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed:
Explanation / Answer
1a
Statement of retained earnings for the year ended december 31
Particulars
$
Retained earnings, Beginning of the year
85000
Add:Net income
61500
Less: Dividend
-37000
Retained earnings balance at the end
109500
1b
Prepare stock holders equity section
Particulars
$
Common stock (par $15, authorized 10000 shares issued 44000 shares of which 1000 shares held has treasury stock
660000
Common stock dividend distributable
Additional paid in capital- common stock
189000
Retained earnings
109500
Total Paid in capital and retained earnings
958500
Less: Treasury stock
-20000
Total stockholders' equity
938500
2
Determine number of shares that receive stock dividends
Common stock
44000
Less: Treasury stock
-1000
43000
3
compute ROE
Net income/ Stock holders' equity
Net income
61500
Stock holders' equity
638000
ROE
9.64%
1a
Statement of retained earnings for the year ended december 31
Particulars
$
Retained earnings, Beginning of the year
85000
Add:Net income
61500
Less: Dividend
-37000
Retained earnings balance at the end
109500
1b
Prepare stock holders equity section
Particulars
$
Common stock (par $15, authorized 10000 shares issued 44000 shares of which 1000 shares held has treasury stock
660000
Common stock dividend distributable
Additional paid in capital- common stock
189000
Retained earnings
109500
Total Paid in capital and retained earnings
958500
Less: Treasury stock
-20000
Total stockholders' equity
938500
2
Determine number of shares that receive stock dividends
Common stock
44000
Less: Treasury stock
-1000
43000
3
compute ROE
Net income/ Stock holders' equity
Net income
61500
Stock holders' equity
638000
ROE
9.64%