Problem 11-2A The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows.
| Preferred Stock (8%, $100 par noncumulative, 4,200 shares authorized) |
$252,000 |
| Common Stock ($5 stated value, 318,300 shares authorized) |
1,273,200 |
| Paid-in Capital in Excess of Par Value-Preferred Stock |
12,600 |
| Paid-in Capital in Excess of Stated Value-Common Stock |
509,280 |
| Retained Earnings |
685,200 |
| Treasury Stock-(4,200 common shares) |
33,600 |
During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 4,900 shares of common stock for $34,300.
Mar. 20 Purchased 1,960 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 $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014.
Dec. 31 Determined that net income for the year was $284,200. Paid the dividend declared on December 1.
Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Post entries in the order of journal entries posted in the previous part.)
Prepare the stockholders' equity section of the balance sheet at December 31, 2014.
Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Round earning per share to 2 decimal places, e.g. $2.65 and all other answers to 1 decimal place. 17.5%.)
Problem 2- The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows.
| Preferred Stock (8%, $100 par noncumulative, 4,200 shares authorized) |
$252,000 |
| Common Stock ($5 stated value, 318,300 shares authorized) |
1,273,200 |
| Paid-in Capital in Excess of Par Value-Preferred Stock |
12,600 |
| Paid-in Capital in Excess of Stated Value-Common Stock |
509,280 |
| Retained Earnings |
685,200 |
| Treasury Stock-(4,200 common shares) |
33,600 |
During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 4,900 shares of common stock for $34,300.
Mar. 20 Purchased 1,960 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 $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014.
Dec. 31 Determined that net income for the year was $284,200. Paid the dividend declared on December 1.
Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Post entries in the order of journal entries posted in the previous part.)
Prepare the stockholders' equity section of the balance sheet at December 31, 2014.