Question

Question 12 View Policies Current Attempt in Progress The stockholders' equity accounts of Culver Corporation on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,850 shares authorized) $291,000 Common Stock ($3 stated value, 316,000 shares authorized) 790,000 Paid-in Capital in Excess of Par Value-Preferred Stock 14,550 Paid-in Capital in Excess of Stated Value-Common Stock 505,600 Retained Earnings 694,500 Treasury Stock (4.850 common shares) 38,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,700 shares of common stock for $32.900. Mar. 20 Purchased 1,650 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. Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $276,400. Pald the dividend declared on December 1.

This is all 1 question. I could really use the help. Thank you.

Answer 1

a)
Date	Account/Description	Debit	Credit
Feb. 1	Cash	32,900
	Common Stock (4700 shares x $3)		14,100
	Paid-in Capital in Excess of Stated Value-Common Stock		18,800
Mar. 20	Treasury Stock (1650 x $9)	14,850
	Cash		14,850
Oct. 1	Cash Dividends ($291,000 x 6%)	17,460
	Dividends Payable		17,460
Nov. 1	Dividends Payable	17,460
	Cash		17,460
Dec. 1	Cash Dividends [$790,000/$3 + 4700  – (4850 + 1,650)] X $.85	222,303
	Dividends Payable		222,303
Dec. 31	Income Summary	276,400
	Retained Earnings		276,400
	(To close income summary)
Dec. 31	Retained Earnings (17,460 + 222,303)	239,763
	Cash Dividends		239,763
	(To close dividends)
Dec. 31	Dividends Payable	222,303
	Cash		222,303
	(To pay dividends)
b)
Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T accounts.) (If answer is zero please enter 0, do not leave any fields blank.)
Preferred Stock					Paid-in Cap. in Excess of Par Value - Pref. Stock
		1-Jan	291,000				1-Jan
		12/31 Bal.	291,000				12/31 Bal.
Common Stock					Paid-in Cap. in Exc. of Stated Value - Comm. Stock
		1/1 Bal.	790,000				1/1 Bal.
		1-Feb	14,100				1-Feb
		12/31 Bal.	804,100				12/31 Bal.
Retained Earnings					Treasury Stock - Common
31-Dec	239,763	1/1 Bal.	694,500		1/1 Bal.	38,800
		31-Dec	276,400		20-Mar	14,850
		12/31 Bal.	731,137		12/31 Bal.	53,650
Cash Dividends
1-Oct	17,460
1-Dec	222,303	31-Dec	239,763
12/31 Bal.	0
c)
SIGMA CORPORATION
	Partial Balance Sheet
	31-Dec-10
	Stockholders’ equity
	Paid-in capital
	Capital stock
	6% Preferred stock, $100 par value, non cumulative, 4850 shares authorized, 2,910 shares issued and  outstanding	$ 291,000.00
	Common stock, no-par, $3 stated value, 316,000 shares authorized, 268,033 shares issued and 261533 shares outstanding	$ 804,100.00
	Total capital stock		$ 1,095,100.00
	Additional paid-in capital
	In excess of par value—    preferred stock	$   14,550.00
	In excess of stated value—    common stock	$ 524,400.00
	Total additional paid-in - capital		$    538,950.00
	Total paid-in capital		$ 1,634,050.00
	Retained earnings		$    731,136.67
	Total paid-in capital and  retained earnings		$ 2,365,186.67
	Less:  Treasury stock (6,500 common shares)		$    (53,650.00)
	Total stockholders’ equity		$ 2,311,536.67
d) Calculate the payout ratio, earnings per share, and return on common stockholders’ equity ratio. (Note: Use the common shares outstanding on January 1 and December 31 to determine average shares outstanding.) (Round all ratios to 1 decimal place, e.g. 25.5 and earnings per share to 2 decimal places, e.g. 2.25.)
Payout ratio = 222,303/$276,400	80.43%
Earnings per share = Net Income - Preferred Dividend/ Average Outstanding Shares = 258,940/260008	$                                                             1.00
	Number of shares
Beginning  = ((790000/3)-4850)	258,483
Ending = (790,000/3+ 4700)-6500	261,533
Average Outstanding shares	260,008
Return on common stockholders' equity = 258940 / 1978643.33	13.09%
Beginning shareholder equity	$                                               1,951,300.00
Ending shareholder equity	$                                               2,005,986.67
Average shareholder equity	$                                               1,978,643.33