In: Accounting
On January 1, 2022, Blue Spruce Corp. had these stockholders’ equity accounts.
Common Stock ($10 par value, 72,500 shares issued and outstanding) | $655,000 | |
Paid-in Capital in Excess of Par Value | 480,500 | |
Retained Earnings | 605,000 |
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 30, distributable May 15. On April 15, the market price of the stock was $15 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 $351,000. |
Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)
Enter the beginning balances and post the entries to the stockholders’ equity T-accounts.
Prepare the stockholders’ equity section of the balance sheet at December 31
Calculate the payout ratio and return on common stockholders’ equity. (Round answers to 1 decimal place, e.g. 12.5%.)