On January 1, 2014, Agassi Corporation had the following stockholders' equity accounts. Common Stock ($10 par value, 60,000 shares issued and outstanding) $600,000
Paid-in Capital in Excess of Par-Common Stock 500,000
Retained Earnings 620,000
During 2014, the following transactions occurred.
Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders.
Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $14 per share.
May 15 Reacquired 2,000 common shares at a market price of $15 per share.
Nov. 15 Reissued 1,000 shares held in treasury at a price of $18 per share.
Dec. 31 Determined that net income for the year was $370,000.
Journalize the above transactions. (Include entries to close net income to Retained Earnings.) Determine the ending balances for Paid-in Capital, Retained Earnings, and Stockholders' Equity.Calculate the payout ratio and the return on common stock equity.