Solution for QID #34120: The stockholders equity accounts of Blue Spruce Corp on Janu | StudyHelpMe

The stockholders equity accounts of Blue Spruce Corp on January 1,2017 were as follows. Preferred Stock (8%, $100 par noncumulate, 4300 shares authorized) $258,000 Common Stock ( $3 Stated value, 341,000 shares authorized) 852,500 Paid-in capital in excess of par value- Preferred Stock 12,900 Paid-in capital in excess of stated value- Common stock 545,600 Retained earnings 687,500 Treasury Stock (4,300 common shares) 34,400 During 2017, the corporation had the following transactions and events pertaining to its stockholders equity Feb 1. Issued 5,030 shares of common stock for $30,180 March 20. Purchased 1,700 additional shares of common treasury stock at $9 per share Oct 1. Declared a 8% cash dividend on preferred stock, payable Nov 1 Nov 1. Paid the dividend declared on Oct 1. Dec 1. Declared a $0.80 per share cash dividend to common stockholders of record on December 15, payable Dec 31, 2017 Dec 31. Determined that net income for the year was $280,100. Paid the dividend declared on Dec 1. 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) 2. Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Use T-accounts) 3. Prepare the stockholders’ equity section of the balance sheet at December 31, 2014. 4. Calculate the payout ratio, earnings per share, and return on common stockholders’ equity.    a) Payout Ratio %    b) Earnings per share $    c) Return on common stockholders' equity %