Journalize transactions, post, and prepare a stockholders\' equity section; calc
ID: 2499090 • Letter: J
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Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. (LO 2, 3, 5, 7, 8), AP The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $?300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000 During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. ?1 Issued 5,000 shares of common stock for $30,000. Mar. ?20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct.????1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. ?1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1. Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. (LO 2, 3, 5, 7, 8), AP The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $?300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000 During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. ?1 Issued 5,000 shares of common stock for $30,000. Mar. ?20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct.????1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. ?1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1. Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. (LO 2, 3, 5, 7, 8), AP Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. (LO 2, 3, 5, 7, 8), AP Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $?300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000 Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $?300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000 Feb. ?1 Issued 5,000 shares of common stock for $30,000. Mar. ?20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct.????1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. ?1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1. Feb. ?1 Issued 5,000 shares of common stock for $30,000. Mar. ?20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct.????1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. ?1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1. Instructions 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) 2. Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) 3. Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tot. paid-in capital $1,825,000 4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) Instructions 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) 2. Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) 3. Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tot. paid-in capital $1,825,000 4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) 2. Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) 3. Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tot. paid-in capital $1,825,000 Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tot. paid-in capital $1,825,000 Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tot. paid-in capital $1,825,000 Tot. paid-in capital $1,825,000 Tot. paid-in capital $1,825,000 Tot. paid-in capital $1,825,000 4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $?300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,000 Treasury Stock (5,000 common shares) 40,000Explanation / Answer
1. Feb.1 cash Dr.30000
To common stock(5000 share*4) $20000
To Paid in capital in excess of stated value(5000shares*2) $10000
(Being common stock issues in excess of par)
mar.20 treasury stock Dr.$7000
To cash $7000
(Being treasury stock purchased)
Oct.1 Retainded earning(3000preferred stock * $100 * 7%) Dr.$21000
To dividend payable $21000
(Being dividend due)
Nov.1 Dividend Payable Dr. $21000
To cash $21000
(Being dividend due on Oct.1 paid)
Dec.1 Retainded earning(244000shares * $0.50) Dr.$122000
To dividend payable $122000
(Being dividend due)
Note: calculation of dividend amount due;
total shares issued = 250000 shares
less: common stock = 5000 shares
less: additional stock = 1000 shares
total on which dividend paid = 244000 shares
Dec.31 dividend payable Dr.$122000
To cash $122000
(Being dividend amount due on Dec.1 paid)
Profit and loss Account (net Income) Dr.$280000
To Retained Earning $280000
(being net income tranfered to retained earning)
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