Journalize Diedre's transactions for 2019. Diedre Corporation Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In...

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Journalize Diedre's transactions for 2019. Diedre Corporation Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Common Stock-$2 Par Value; 7,000,000 shares authorized, 2,000,000 shares issued and outstanding $ 4,000,000 Paid-In Capital in Excess of Par-Common 900,000 Total Paid-In Capital 4,900,000 Retained Earnings 360,000,000 Total Stockholders' Equity 2$ 364,900,000 Jan 1: Issued 50,000 shares of common stock for $7 per share. Jan 1 Cash 350,000 Common Stock---$2 Par Value 100,000 Paid-In Capital in Excess of Par--Common 250,000 Issued common stock at a premium Feb 15: Issued 9,000 shares of common stock for $6 per share. Feb 15 Cash 54,000 Common Stock---$2 Par Value 18,000 Paid-In Capital in Excess of Par--Common 36,000 Issued common stock at a premium Mar 1: Declared a $0.50 per share cash dividend on its common stock to be paid on March 30. Mar 1 Cash Dividends 1,029,500 Dividends Payable--Common 1,029,500 Declared a cash dividend Mar 15: Date of record for cash dividend declared on March 1. Mar 15 No entry recorded Mar 30: Paid the cash dividend (from Mar. 1 declaration) to stockholders. Mar 30 Dividends Payable--Common 1,029,500 Cash 1,029,500 Payment of cash dividend Nov 1: Declared a 5% common stock dividend on all common stock outstanding. Current market price of the stock was $4. Nov 1 Stock Dividends 411,800 Common Stock Dividend Distributable 205,900 Paid-In Capital in Excess of Par--Common 205,900 Declared 5% stock dividend Nov 15: Date of record for common stock dividend declared on November 1. Nov 15 No entry recorded Nov 30: Distributed stock (from Nov 1 declaration) to stockholders. Nov 30 Common Stock Dividend Distributable 205,900 Common Stock--$2 Par Value 205,900 Issued 5% stock dividend Dec 1: Purchased 3,000 shares of treasury stock--common at $5 per share. Dec 1 Treasury Stock--Common 15,000 Cash 15,000 Purchased treasury stock Dec 20: Sold 2,000 shares of treasury stock--common at $6per share. Dec 20 Cash 12,000 Treasury Stock--Common 10,000 Paid-In Capital from Treasury Stock Transaction 2,000 Sold treasury stock above cost Requirement 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2019. Assume Diedre had net income of $10,000,000 during 2019 and that Cash Dividends and Stock Dividends have been closed to the Retained Earnings account. Diedre Corporation Balance Sheet (Partial) December 31, 2019 Paid-In Capital: Common Stock--$2 Par Value; 7,000,000 shares authorized 2,161,950 shares issued 2,160,950 shares outstanding $4,323,900 Paid-In Capital in Excess of Par--Common 1,391,900 Paid-In Capital from Treasury Stock Transactions =2,000 Total Paid-In Capital 5,717,800 Retained Earnings 368,558,700 Treasury Stock at Cost (5,000) Total Stockholders' Equity $374,271,500 Requirement 3. Determine Diedre's earnings per share for 2019. (Net Income Preferred dividends) / Ave # common shares OS = Earnings per share ($10,000,000 $0) 2,080,475 = $4,81 Requirement 4. Assuming Diedre's market value per common share as of December 31, 2019, was $9, Calculate Diedre's price/earnings ratio for 2019. Market price per share Earnings per share Price/earnings ratio $9 4.81 $1.87 = Journalize Diedre's transactions for 2019. Diedre Corporation Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Common Stock-$2 Par Value; 7,000,000 shares authorized, 2,000,000 shares issued and outstanding $ 4,000,000 Paid-In Capital in Excess of Par-Common 900,000 Total Paid-In Capital 4,900,000 Retained Earnings 360,000,000 Total Stockholders' Equity 2$ 364,900,000 Jan 1: Issued 50,000 shares of common stock for $7 per share. Jan 1 Cash 350,000 Common Stock---$2 Par Value 100,000 Paid-In Capital in Excess of Par--Common 250,000 Issued common stock at a premium Feb 15: Issued 9,000 shares of common stock for $6 per share. Feb 15 Cash 54,000 Common Stock---$2 Par Value 18,000 Paid-In Capital in Excess of Par--Common 36,000 Issued common stock at a premium Mar 1: Declared a $0.50 per share cash dividend on its common stock to be paid on March 30. Mar 1 Cash Dividends 1,029,500 Dividends Payable--Common 1,029,500 Declared a cash dividend Mar 15: Date of record for cash dividend declared on March 1. Mar 15 No entry recorded Mar 30: Paid the cash dividend (from Mar. 1 declaration) to stockholders. Mar 30 Dividends Payable--Common 1,029,500 Cash 1,029,500 Payment of cash dividend Nov 1: Declared a 5% common stock dividend on all common stock outstanding. Current market price of the stock was $4. Nov 1 Stock Dividends 411,800 Common Stock Dividend Distributable 205,900 Paid-In Capital in Excess of Par--Common 205,900 Declared 5% stock dividend Nov 15: Date of record for common stock dividend declared on November 1. Nov 15 No entry recorded Nov 30: Distributed stock (from Nov 1 declaration) to stockholders. Nov 30 Common Stock Dividend Distributable 205,900 Common Stock--$2 Par Value 205,900 Issued 5% stock dividend Dec 1: Purchased 3,000 shares of treasury stock--common at $5 per share. Dec 1 Treasury Stock--Common 15,000 Cash 15,000 Purchased treasury stock Dec 20: Sold 2,000 shares of treasury stock--common at $6per share. Dec 20 Cash 12,000 Treasury Stock--Common 10,000 Paid-In Capital from Treasury Stock Transaction 2,000 Sold treasury stock above cost Requirement 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2019. Assume Diedre had net income of $10,000,000 during 2019 and that Cash Dividends and Stock Dividends have been closed to the Retained Earnings account. Diedre Corporation Balance Sheet (Partial) December 31, 2019 Paid-In Capital: Common Stock--$2 Par Value; 7,000,000 shares authorized 2,161,950 shares issued 2,160,950 shares outstanding $4,323,900 Paid-In Capital in Excess of Par--Common 1,391,900 Paid-In Capital from Treasury Stock Transactions =2,000 Total Paid-In Capital 5,717,800 Retained Earnings 368,558,700 Treasury Stock at Cost (5,000) Total Stockholders' Equity $374,271,500 Requirement 3. Determine Diedre's earnings per share for 2019. (Net Income Preferred dividends) / Ave # common shares OS = Earnings per share ($10,000,000 $0) 2,080,475 = $4,81 Requirement 4. Assuming Diedre's market value per common share as of December 31, 2019, was $9, Calculate Diedre's price/earnings ratio for 2019. Market price per share Earnings per share Price/earnings ratio $9 4.81 $1.87 =

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