Reference no: EM132916290
Question - On January 1, 2020, Agassi Corporation had the following stockholders' equity accounts.
Common Stock ($10 par value, 50,000 shares issued and outstanding) $500,000
Paid-in Capital in Excess of Par-Common Stock 480,000
Retained Earnings 600,000
During 2020, the following transactions occurred.
Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders.
Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $13 per share.
May 15 Reacquired 1,800 common shares at a market price of $15 per share.
Nov. 15 Reissued 900 shares held in treasury at a price of $18 per share.
Dec. 31 Determined that net income for the year was $360,000.
Required -
a1) Journalize the above transactions. (Include entries to close net income to Retained Earnings.)
a2) Determine the ending balances for Paid-in Capital, Retained Earnings, and Stockholders' Equity.
B) Calculate the payout ratio and the return on common stockholders' equity.