Reference no: EM132451045
Question - On January 1, 2014, Everett Corporation had these stockholders' equity accounts.
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Common Stock ($10 par value, 81,600 shares issued and outstanding)
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$816,000
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Paid-in Capital in Excess of Par Value
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521,800
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Retained Earnings
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653,500
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During the year, the following transactions occurred.
Jan. 15 Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $12 per share.
May 15 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2015.
Dec. 31 Determined that net income for the year was $351,300.
Required -
1. Journalize the transactions.
2. Enter the beginning balances and post the entries to the stockholders' equity T-accounts.
3. Prepare the stockholders' equity section of the balance sheet at December 31.
4. Calculate the payout ratio and return on common stockholders' equity.