Question

In: Accounting

Problem 8-4 The stockholders’ equity accounts of Monty Corp. on January 1, 2017, were as follows....

Problem 8-4

The stockholders’ equity accounts of Monty Corp. on January 1, 2017, were as follows.
Preferred Stock (6%, $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 695,000
Treasury Stock (5,000 common shares) 40,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 5,000 shares of common stock for $35,000.
Mar. 20 Purchased 1,000 additional shares of common treasury stock at $9 per share.
Oct. 1 Declared a 6% cash dividend on preferred stock, payable November 1.
Nov. 1 Paid the dividend declared on October 1.
Dec. 1 Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.
Dec. 31 Paid the dividend declared on December 1.
(a) Prepare a tabular summary that includes the January 1, 2017, balances. Do not include the beginning balance in Retained Earnings in the tabular summary.
(b)

Record the 2017 transactions in the tabular summary.

Assets

 =

Liabilities

 +

Stockholders’ Equity
Paid-in-Capital Retained Earnings
Cash = Div. Pay. + Common Stock + PIC in Excess of Stated Value Com. + Pref. Stock + PIC in Excess of Par Value Pref. - Treasury Stock +

Revenue

 - Expense - Dividend
(a) Bal. $ $ $ $ $ $ $ $ $ $
(b) Feb. 1
Mar. 20
Oct. 1
Nov. 1
Dec. 1
Dec. 31

Prepare the stockholders’ equity section of the balance sheet at December 31, 2017. Include 2017 net income of $320,000 as an increase to the January 1, 2017, Retained Earnings.

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.) (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)

Payout ratio %
Earnings per share $
Return on common stockholders’ equity %

Solutions

Expert Solution

Journal entries and T accounts

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Problem 8-4 The stockholders’ equity accounts of Sheffield Corp. on January 1, 2017, were as follows....
Problem 8-4 The stockholders’ equity accounts of Sheffield Corp. on January 1, 2017, 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 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued...
The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative,  4,200 shares authorized) $ 252,000 Common Stock ($ 3 stated value,  336,000 shares authorized) 840,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,600 Paid-in Capital in Excess of Stated Value—Common Stock 537,600 Retained Earnings 691,500 Treasury Stock ( 4,200 common shares) 33,600 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1...
The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred...
The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value—Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value—Common Stock 489,600 Retained Earnings 699,500 Treasury Stock (4,650 common shares) 37,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,860...
The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred...
The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative,  4,150 shares authorized) $ 249,000 Common Stock ($ 5 stated value,  345,000 shares authorized) 1,437,499 Paid-in Capital in Excess of Par Value—Preferred Stock 12,450 Paid-in Capital in Excess of Stated Value—Common Stock 552,000 Retained Earnings 694,000 Treasury Stock ( 4,150 common shares) 33,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb....
The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred...
The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,150 shares authorized) $249,000 Common Stock ($5 stated value, 345,000 shares authorized) 1,437,499 Paid-in Capital in Excess of Par Value—Preferred Stock 12,450 Paid-in Capital in Excess of Stated Value—Common Stock 552,000 Retained Earnings 694,000 Treasury Stock (4,150 common shares) 33,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,540...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, 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 688,500 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,000 shares...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 14,000 shares authorized) $840,000 Common Stock ($4 stated value, 840,000 shares authorized) 2,800,000 Paid-in Capital in Excess of Par Value—Preferred Stock 42,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,344,000 Retained Earnings 1,926,400 Treasury Stock (14,000 common shares) 112,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 14,000 shares...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,200 shares authorized) $252,000 Common Stock ($5 stated value, 300,000 shares authorized) 1,250,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,600 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,500 Treasury Stock (4,200 common shares) 33,600 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,730 shares...
Problem 11-3A The stockholders’ equity accounts of Castle Corporation on January 1, 2017, were as follows....
Problem 11-3A The stockholders’ equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $50 par, cumulative, 11,000 shares authorized) $ 425,000 Common Stock ($1 stated value, 1,950,000 shares authorized) 1,150,000 Paid-in Capital in Excess of Par—Preferred Stock 105,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,450,000 Retained Earnings 1,850,000 Treasury Stock (10,500 common shares) 42,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued...
On January 1, 2017, Monty Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2017, Monty Corp. had these stockholders’ equity accounts. Common Stock ($10 par value, 75,000 shares issued and outstanding) $750,000 Paid-in Capital in Excess of Par Value 523,000 Retained Earnings 620,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.60 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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT