The stockholders\' equity accounts of Grouper Corp. on January 1, 2017, were as

Question

The stockholders' equity accounts of Grouper Corp. on January 1, 2017, were as follows. Preferred Stock (890, $100 par noncumulative, 4,600 shares authorized) Common Stock ($4 stated value, 320,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stoclk Retained Earnings Treasury Stock (4,600 common shares) $276,000 1,066,666 13,800 512,000 691,500 36,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,580 shares of common stock for $27,480. Mar. 20 Purchased 1,650 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.60 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 $276,400. Paid the dividend declared on December 1.

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Beginning Common Stock 320000/4 80000 Add: New Issue 4580 Less: Beginning Treasury Stock -4600 Less: Purchase Treasury Stock -1650 No of Share eligible for Dividend 78330 Dividend per share 0.6 Dividend 46998 Payout Ratio Dividend paid/Net Income 46998/276400 17.0% Earning per Share Dividend Per share/Pay out ratio 0.6/0.17                     3.53 Return on Stockholder Equity (Net Income-Preferred Dividend)/Common Stockholder Equity (276400-22080)/1557796 16.3% Net Income 276400 Preferred Dividend 276000*8% 22080 Common Stockholder Equity: Stock Paid in excess Treasury Total Beginning 1066666 512000 -36800 1541866 New Issue 18320 9160 27480 Purchase -11550 -11550 Total 1557796

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