MWIJAYA
Apr 18, 2007, 10:40 AM
Please help me with this problem:
I don't have a single clue to solve it, eventhough we have a hint (total paid in capital $2,970,000)
The stockholders' equity a/c of Ewers corp at Dec 31,2005 were as follows.
Preferred stock (12%, $50par cumulative, 10,000 shares authorized $400,000
common stock ($1 stated value, 2,000,000 shares authorized $1,000,000
paid in capital in excess of par value-preferred stock $80,000
paid in capital in excess of stated value-common stock $1,400,000
retained earnings $1,716,000
treasury stock-common stock (10,000 shares) $40,000
during 2005, the corp had these trans. and events pertaining to its stockholders' equity
Feb 1 issued 15,000 shares of common stock for $90,000
nov 10 purchased 14,000 shares of commonstock for the treasury at a cost of $18,000
nov 15 declared a 12% cash divident on preferred stock, payable dec 15
dec 1 declared a $0.30 per share cash dividend to stockholder of record on dec 15, payable dec 31, 2005
dec 15 paid the divident declared on nov 15
dec 31 determined that net income for the year was $408,000. The market price of common stock on this date was $9 per share. Paid the dividend declared on Dec 1
QUESTIONS:
a) journalize the transactions
b) enter the beginning balances in the a/c and post the journal entries to the stockholders equity a/c
c) prepare stockholders' equity section of the balance sheet at dec 31,2005
d) calculate payout ratio, earnings per share, price-earnings ratio and return on common stockholder's equity ration (Hint: use the common shares outstanding on Jan 1 and Dec 31 to determine average shares outstanding)
Please..... please.... help me with this case.
Thank you so much,
Mariana
I don't have a single clue to solve it, eventhough we have a hint (total paid in capital $2,970,000)
The stockholders' equity a/c of Ewers corp at Dec 31,2005 were as follows.
Preferred stock (12%, $50par cumulative, 10,000 shares authorized $400,000
common stock ($1 stated value, 2,000,000 shares authorized $1,000,000
paid in capital in excess of par value-preferred stock $80,000
paid in capital in excess of stated value-common stock $1,400,000
retained earnings $1,716,000
treasury stock-common stock (10,000 shares) $40,000
during 2005, the corp had these trans. and events pertaining to its stockholders' equity
Feb 1 issued 15,000 shares of common stock for $90,000
nov 10 purchased 14,000 shares of commonstock for the treasury at a cost of $18,000
nov 15 declared a 12% cash divident on preferred stock, payable dec 15
dec 1 declared a $0.30 per share cash dividend to stockholder of record on dec 15, payable dec 31, 2005
dec 15 paid the divident declared on nov 15
dec 31 determined that net income for the year was $408,000. The market price of common stock on this date was $9 per share. Paid the dividend declared on Dec 1
QUESTIONS:
a) journalize the transactions
b) enter the beginning balances in the a/c and post the journal entries to the stockholders equity a/c
c) prepare stockholders' equity section of the balance sheet at dec 31,2005
d) calculate payout ratio, earnings per share, price-earnings ratio and return on common stockholder's equity ration (Hint: use the common shares outstanding on Jan 1 and Dec 31 to determine average shares outstanding)
Please..... please.... help me with this case.
Thank you so much,
Mariana