The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock...
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The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,100 shares authorized) $246,000 Common Stock ($4 stated value, 331,000 shares authorized) 1,103,333 Paid-in Capital in Excess of Par Value-Preferred Stock 12,300. Paid-in Capital in Excess of Stated Value-Common Stock 529,600 Retained Earnings 689,000 Treasury Stock (4,100 common shares) 32,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,020 shares of common stock for $35,140. Mar. 20 Purchased 1,800 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1, Nov. 1 Paid the dividend declared on October 1. Dec. 1 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 $275,600. Paid the dividend declared on December 1. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.) Payout ratio % Earnings per share Return on common stockholders' equity % The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,100 shares authorized) $246,000 Common Stock ($4 stated value, 331,000 shares authorized) 1,103,333 Paid-in Capital in Excess of Par Value-Preferred Stock 12,300. Paid-in Capital in Excess of Stated Value-Common Stock 529,600 Retained Earnings 689,000 Treasury Stock (4,100 common shares) 32,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,020 shares of common stock for $35,140. Mar. 20 Purchased 1,800 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1, Nov. 1 Paid the dividend declared on October 1. Dec. 1 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 $275,600. Paid the dividend declared on December 1. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.) Payout ratio % Earnings per share Return on common stockholders' equity %
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Journal Entries Date Account title and explanation Debit Credit Feb1 Cash 35140 Common stock 5020 x ... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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