Given the following info I need to: 1. Journalize the transactions (I\'ve done s
ID: 2526548 • Letter: G
Question
Given the following info I need to:
1. Journalize the transactions (I've done some of it, i just need the dr/cr values).
2. Enter the beginning bealances and post the entries to the stockholder's equity T-accounts.
3. Prepare the stockholder's equity section of the balance sheet at Dec. 31.
4. Calculate the payout ratio and return on common stockholders' equity. (%)
On January 1, 2017, Culver Corporation had these stockholders’ equity accounts.
During the year, the following transactions occurred.
Determined that net income for the year was $353,000.
DATE ACCOUNT TITLES/EXPLANATION DEBIT CREDIT Jan. 15 Cash Dividends Dividends Payable Feb. 15 Dividends Payable Cash Apr. 15 Stock Dividends Common Stock Dividends Distributable Paid-in Capital in Excess of Par Value - Common Stock May 15 Common Stock Dividends Distributable Common Stock Dec. 1 Cash Dividends Dividends Payable Dec. 31 Income Summary Retained Earnings Dec. 31 Retained Earnings Stock Dividends Dec. 31 Retained Earnings Cash DividendsExplanation / Answer
Solution:
Date
Account Titles & explanation
Debit
Credit
15-Jan
Cash Dividend (0.7*81500)
57,050
Dividend Payable
57,050
15-Feb
Dividend Payable
57,050
Cash
57,050
15-Apr
Stock dividend
114,100
Common Stock Dividend Distributable
81,500
Paid in capital in excess of Par (81500*10%*4)
32,600
15-May
Common Stock Dividend Distributable
81,500
Common Stock
81,500
01-Dec
Cash Dividend =(86100+8610)*0.6
62,755
Dividend Payable (81,500 + 8150) * 0.7
62,755
31-Dec
Income Summary
353,000
Retained earnings
353,000
31-Dec
Retained earnings
114,100
Stock dividend
114,100
31-Dec
Retained earnings
119,805
Cash Dividend
119,805
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
815,000
15-May
Common Stock Dividend Distributable
81,500
896,500
31-Dec
Balance
896,500
Paid in Capital in excess of Par value
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
483,000
15-Apr
Stock Dividend
32,600
515,600
31-Dec
Balance
515,600
Retained earnnigs
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
620,000
31-Dec
Income Summary
353,000
973,000
31-Dec
Stock Dividend
114,100
858,900
31-Dec
Cash Dividend
119,805
739,095
31-Dec
Balance
739,095
Common Stock Dividend Distributable
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
0
15-Apr
Stock Dividend
81,500
81,500
15-May
Common Stock
81,500
-
31-Dec
Balance
81,500
Stock Dividend
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
0
15-Apr
Common Stock Dividend Distributable
114,100
114,100
31-Dec
Retained earnings
114,100
-
31-Dec
Balance
114,100
Cash Dividend
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
0
15-Jan
Dividend Payable
57,050
57,050
01-Dec
Dividend Payable
62,755
119,805
31-Dec
0
119,805
31-Dec
Balance
119,805
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $10 par value
shares issued and outstanding
896,500
Additional paid-in capital
Paid-in Capital in Excess of Par Value-Common Stock
515,600
Total paid-in capital
1,412,100
Retained earnings
739,095
Total stockholders’ equity
2,151,195
Date
Account Titles & explanation
Debit
Credit
15-Jan
Cash Dividend (0.7*81500)
57,050
Dividend Payable
57,050
15-Feb
Dividend Payable
57,050
Cash
57,050
15-Apr
Stock dividend
114,100
Common Stock Dividend Distributable
81,500
Paid in capital in excess of Par (81500*10%*4)
32,600
15-May
Common Stock Dividend Distributable
81,500
Common Stock
81,500
01-Dec
Cash Dividend =(86100+8610)*0.6
62,755
Dividend Payable (81,500 + 8150) * 0.7
62,755
31-Dec
Income Summary
353,000
Retained earnings
353,000
31-Dec
Retained earnings
114,100
Stock dividend
114,100
31-Dec
Retained earnings
119,805
Cash Dividend
119,805
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.