Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Paid-In Paid-In Preferred Capital- Preferred Common Capital- Retained Stock Stock Common Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net income 65,000 Cash dividend -31,000 5,000 $55,000 Stock dividend 10,000 -15,000 Balance, Dec. 31 $110,000 $500,000 $50,000 $219,000 Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $2 per share. Assume that the common stockholders have a right to the total net income of $65,000. Required: 1. Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678 rounds to .3468 and would be entered as 34.68, indicating 34.68%. 2. Determine the book value per share of Divac's common stock. Round the book value per share to two decimals. per share

Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Paid-In Paid-In Preferred Capital- Preferred Common Capital- Retained Stock Stock Common Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net income 65,000 Cash dividend -31,000 5,000 $55,000 Stock dividend 10,000 -15,000 Balance, Dec. 31 $110,000 $500,000 $50,000 $219,000 Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $2 per share. Assume that the common stockholders have a right to the total net income of $65,000. Required: 1. Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678 rounds to .3468 and would be entered as 34.68, indicating 34.68%. 2. Determine the book value per share of Divac's common stock. Round the book value per share to two decimals. per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. P11-2B The stockholders' equity accounts of Warden Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (8,000 common shares) $ 200,000 1,000,000 16,000 1,400,000 1,716,000 20,000 (LO 2, 3, 5, 7, 8), AP GLS During 2014 the corporation had these transactions and events pertaining to its stock- holders' equity. Feb. Issued 20,000 shares of common stock for $160,000. Purchased 4,000 shares of common stock for the treasury at a cost of $16,000. Declared a 9% cash dividend on preferred stock, payable December 15. Declared a $0.30 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. Nov. 10…
Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Preferred Stock Paid-InCapital—Preferred Common Stock Paid-InCapital—Common Retained Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net income 87,000 Cash dividend -45,000 Stock dividend 10,000 5,000 -15,000 Balance, Dec. 31 $110,000 $55,000 $500,000 $50,000 $227,000 Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $5 per share. Assume that the common stockholders have a right to the total net income of $87,000. Determine the book value per share of Divac’s common stock. Round the book value per share to two decimals.$fill in the blank_____ per share
(Treasury Stock Transactions and Presentation) Clemson Company had the following stockholders’ equity as of January 1, 2017. Common stock, $5 par value, 20,000 shares issued $100,000 Paid-in capital in excess of par—common stock 300,000 Retained earnings 320,000 Total stockholders’ equity $720,000 During 2017, the following transactions occurred.Feb. 1 Clemson repurchased 2,000 shares of treasury stock at a price of $19 per share.Mar. 1 800 shares of treasury stock repurchased above were reissued at $17 per share.Mar. 18 500 shares of treasury stock repurchased above were reissued at $14 per share.Apr. 22 600 shares of treasury stock repurchased above were reissued at $20 per share.Instructions(a) Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.(b) Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
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Payout Ratio and Book Value per Share Divac Company has developed a statement of stockholders' equity for the year 2017 as follows: Preferred Stock Paid-InCapital—Preferred Common Stock Paid-InCapital—Common Retained Earnings Balance, Jan. 1 $100,000 $50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Net income 68,000 Cash dividend -32,000 Stock dividend 10,000 5,000 -15,000 Balance, Dec. 31 $110,000 $55,000 $500,000 $50,000 $221,000 Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $4 per share. Assume that the common stockholders have a right to the total net income of $68,000. Required: 1. Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678…
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The stockholders’ equity accounts of Flint Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,950 shares authorized) $297,000 Common Stock ($4 stated value, 321,000 shares authorized) 1,070,000 Paid-in Capital in Excess of Par Value—Preferred Stock 14,850 Paid-in Capital in Excess of Stated Value—Common Stock 513,600 Retained Earnings 686,500 Treasury Stock (4,950 common shares) 39,600 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,950 shares of common stock for $29,700. Mar. 20 Purchased 1,400 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 $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31…
What amount should be reported as retained earnings on December 31, 2017? On January 1, 2017, an entity reported the following shareholders' equityShare capital, 100,000 shares authorized, 50,000 shares outstamding, P100 par 5,000,000Share premium 4,000,000Retained earnings 5,000,000The BOD declared a 10% stock dividend on July 1, 2017, when the market value of the share was P150. the stock dividend was issued on October 1, 2017 when the market value of the share was P180. The entity sustained a net loss of P1,500,000 for 2017. What amount should be reported as retained earnings on December 31, 2017?
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