Prepare the stockholders equity section of the balance sheet

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Problem - On January 1, 2014, Everett Corporation had these stockholders' equity accounts.

Common Stock ($10 par value, 81,900 shares issued and outstanding) - $819,000

Paid-in Capital in Excess of Par Value - 510,400

Retained Earnings - 684,000

During the year, the following transactions occurred.

Jan. 15 Declared a $0.70 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 $15 per share.

May 15 Issued the shares for the stock dividend.

Dec. 1 Declared a $0.50 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 $429,900.

Journalize the transactions.

Enter the beginning balances and post the entries to the stockholders' equity T-accounts.

Prepare the stockholders' equity section of the balance sheet at December 31.

Calculate the payout ratio and return on common stockholders' equity.

Reference no: EM131641688

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