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Print by: BRIANDA OWEN
Accounting 201 Section 70 / Ch 11 assignment
P11-2A
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The stockholders’ equity accounts of Sigma Corporation on January 1, 2010, were as follows.
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Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized)
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$300,000
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Common Stock ($5 stated value, 300,000 shares authorized)
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1,000,000
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Paid-in Capital in Excess of Par Value – Preferred Stock
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15,000
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Paid-in Capital in Excess of Stated Value – Common Stock
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480,000
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Retained Earnings
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688,000
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Treasury Stock – Common (5,000 shares)
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40,000
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During 2010 the corporation had these transactions and events pertaining to its stockholders’ equity.
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Feb. 1
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Issued 5,000 shares of common stock for $30,000.
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Mar. 20
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Purchased 1,000 additional shares of common treasury stock at $7 per share.
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Oct. 1
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Declared a 8% cash dividend on preferred stock, payable November 1.
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Nov. 1
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Paid the dividend declared on October 1.
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Dec. 1
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Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2010.
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Dec. 31
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Determined that net income for the year was $280,000. Paid the dividend declared on December 1.
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Journalize the transactions. (Include entries to close net income to Retained Earnings. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
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Date
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Account/Description
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Debit
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Credit
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Feb. 1
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Cash
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30,000
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Common Stock
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25,000
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Paid-in Capital in Excess of Stated Value-Common Stock
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5,000
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Mar. 20
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Treasury Stock
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7,000
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Cash
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7,000
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Oct. 1
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Cash Dividends
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24,000
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Dividends Payable
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24,000
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Nov. 1
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Dividends Payable
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24,000
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Cash
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24,000
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Dec. 1
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Cash Dividends
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99,500
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Dividends Payable
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99,500
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Dec. 31
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Income Summary
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280,000
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Retained Earnings
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280,000
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(To close income summary)
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(To close dividends)
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Dividends Payable
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Cash
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(To pay dividends)
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Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Use T accounts.) (If answer is zero please enter 0, do not leave any fields blank.)
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Preferred Stock
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Paid-in Cap. in Excess of Par Value – Pref. Stock
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1/1
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0
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1/1
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300,000
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1/1
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0
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1/1
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15,000
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12/31 Bal.
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0
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12/31 Bal.
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300,000
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12/31 Bal.
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0
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12/31 Bal.
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15,000
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Common Stock
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Paid-in Cap. in Exc. of Stated Value – Comm. Stock
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1/1 Bal.
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0
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1/1 Bal.
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1,000,000
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1/1 Bal.
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0
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1/1 Bal.
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480,000
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2/1
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0
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2/1
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25,000
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2/1
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0
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2/1
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5,000
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12/31 Bal.
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0
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12/31 Bal.
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1,025,000
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12/31 Bal.
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0
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12/31 Bal.
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485,000
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Retained Earnings
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Treasury Stock – Common
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12/31
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1/1 Bal.
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688,000
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1/1 Bal.
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40,000
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1/1 Bal.
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0
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12/31
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0
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12/31
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280,000
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3/20
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7,000
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3/20
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0
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12/31 Bal.
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0
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12/31 Bal.
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12/31 Bal.
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47,000
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12/31 Bal.
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0
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Cash Dividends
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10/1
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24,000
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10/1
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0
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12/1
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99,500
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12/31
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12/31 Bal.
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12/31 Bal.
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0
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Complete the stockholders’ equity section of the balance sheet at December 31, 2010 below. (If amount should be deducted please put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
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SIGMA CORPORATION
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Partial Balance Sheet
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December 31, 2010
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Stockholders’ equity
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Paid-in capital
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Capital stock
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8% Preferred stock,
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$100 par value, noncumulative,
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5,000 shares authorized,
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3,000 shares issued and outstanding
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$ 300,000
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Common stock,
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no par, $5 stated value
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300,000 shares authorized,
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shares issued
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and shares outstanding
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Total capital stock
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$
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Additional paid-in capital
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In excess of par value-preferred stock
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15,000
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In excess of stated value-common stock
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485,000
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Total additional paid-in capital
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500,000
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Total paid-in capital
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Retained earnings
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Total paid-in capital and retained earnings
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Less: Treasury stock
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( 6,000 common shares)
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-47,000
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Total Stockholders’ Equity
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$
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Calculate the payout ratio, earnings per share, and return on common stockholders’ equity ratio. (Note: Use the common shares outstanding on January 1 and December 31 to determine average shares outstanding.) (Round all ratios to 1 decimal place, e.g. 25.5 and earnings per share to 2 decimal places, e.g. 2.25.)
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Payout ratio
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35.5 %
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Earnings per share
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$
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Return on common stockholders’ equity
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%
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Question Attempts: 2 of 3 used
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| Journal is correct but t and balance are not all correct help! |
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