The stockholders' equity accounts of Sheffield Corp. on January 1, 2025, were as follows. Preferred Stock (7%,
Question:
The stockholders' equity accounts of Sheffield Corp. on January 1, 2025, were as follows.
- Preferred Stock (7%, $100 par noncumulative, 4,000 shares authorized) $240,000
- Common Stock ($4 stated value, 240,000 shares authorized) 800,000
- Paid-in Capital in Excess of Par-Preferred Stock 12,000
- Paid in Capital in Excess of Stated Value-Common Stock 384,000
- Retained Earnings 550,400
- Treasury Stock (4,000 common shares) 32,000
During 2025, the corporation had the following transactions and events pertaining to its stockholders' equity.
- Feb. 1 Issued 4,000 shares of common stock for $24,000.
- Mar. 20 Purchased 800 additional shares of common treasury stock at $7 per share.
- Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1.
- Nov. 1 Paid the dividend declared on October 1.
- Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15 , payable
- Dec. 31 Determined that net income for the year was $225,000. Paid the dividend declared on December 1 .
I completed the first step of (a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)
This is where I am stuck:
(b) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts.
(c) Prepare the stockholders' equity section of the balance sheet at December 31,2025 . (Enter account name only and do not provide descriptive information.)
(d) 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 answers to 2 decimal places for per unit and percentage, e.g. 17.50 or 17.50%.)
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell