On January 1, 2022, Blue Spruce Corp. had these stockholders’ equity accounts. Common Stock ($10 par...

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%.)

Solutions

Expert Solution

ekkarill92 answered 10 months ago

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