Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2024, there were 32,900 common and 940 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2024, was $269,780. During 2024, the company had profit of $117,500 and declared a total of $70,500 of dividends, of which $52,875 was paid during the year.
Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2024, there were 32,900 common and 940 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2024, was $269,780. During 2024, the company had profit of $117,500 and declared a total of $70,500 of dividends, of which $52,875 was paid during the year.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9EA: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and...
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![Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5
cumulative preferred shares. On December 31, 2024, there were 32,900 common and 940 preferred shares issued. The common
shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings
account on January 1, 2024, was $269,780. During 2024, the company had profit of $117,500 and declared a total of $70,500 of
dividends, of which $52,875 was paid during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffab3cc17-340b-44cf-840a-1255cd02c78f%2F6c72c47d-7bd4-425d-9d0f-046920a9ab8d%2F5v2l5cu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5
cumulative preferred shares. On December 31, 2024, there were 32,900 common and 940 preferred shares issued. The common
shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings
account on January 1, 2024, was $269,780. During 2024, the company had profit of $117,500 and declared a total of $70,500 of
dividends, of which $52,875 was paid during the year.
![(b)
Shareholders Equity
Share Capital
Preferred Shares
Common Shares
Total Share Capital
Retained Earnings
SPLISH BROTHERS LIMITED
Balance Sheet (Partial)
December 31, 2024
Total Shareholders' Equity
Return on equity
f
%
$
$
98,700
329,000
427,700
316,780
Calculate return on equity for 2024. Assume there were no changes in the Common Shares and Preferred Shares accounts during
the year. (Round answer to 2 decimal places, e.g. 15.75%
744,480](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffab3cc17-340b-44cf-840a-1255cd02c78f%2F6c72c47d-7bd4-425d-9d0f-046920a9ab8d%2Fm9zhs1h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b)
Shareholders Equity
Share Capital
Preferred Shares
Common Shares
Total Share Capital
Retained Earnings
SPLISH BROTHERS LIMITED
Balance Sheet (Partial)
December 31, 2024
Total Shareholders' Equity
Return on equity
f
%
$
$
98,700
329,000
427,700
316,780
Calculate return on equity for 2024. Assume there were no changes in the Common Shares and Preferred Shares accounts during
the year. (Round answer to 2 decimal places, e.g. 15.75%
744,480
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