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).

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 Dividends

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.

Common Stock ($10 par value, 81,500 shares issued and outstanding)		$815,000
Paid-in Capital in Excess of Par Value		483,000
Retained Earnings		620,000

During the year, the following transactions occurred.

Jan.	15		Declared a $0.70 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 $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2018.
Dec.	31		Determined that net income for the year was $353,000.

Answer 1

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