On January 1, 2022, Tacoma Corporation had these stockholders’ equity accounts. Common Stock ($10 par value,...

On January 1, 2022, Tacoma Corporation had these stockholders’ equity accounts.

Common Stock ($10 par value, 70,000 shares issued and outstanding)		$700,000
Paid-in Capital in Excess of Par Value		500,000
Retained Earnings		620,000

During the year, the following transactions occurred.

Jan.	15	Declared a $0.50 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 $14 per share.
May	15	Issued the shares for the stock dividend.
Dec.	1	Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2023.
Dec.	31	Determined that net income for the year was $400,000

Please 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 Dec 31, and calculate the payout ratio and return on common stockholders equity.

Thanks!

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ekkarill92 answered 1 year ago

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