Question

Any help would be very much appreciated!

Problem 11-2A The stockholders' equity accounts of Blue Spruce Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) Common Stock (S4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Eamings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 685,500 40,000 During 2017, the corporation had the following transactions and events pertaining to its stocknolders equity Feb. Issued 5,000 shares of common stock for $30,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1 Nov. Paid the dividend declared on October 1 Dec. 1 Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,500. Paid the dividend declared on December 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g- 5,275.) Date Account Titles and Explanation Debit Credit

Answer 1

Requirement-(a Date Feb.1 General Journal Debit Credit Remarks Cash $30,000 [Given] Common Stock $20,000 [5,000 x $4] Addl. Paid in Capital in Excess of Stated - Common $7,000 $21,000 $21,000 $211,650 $276,500 $211,650 $10,000 [Balancing Figure] $7,000 $21,000 $21,000 [1,000 x $7] [$300,000 x 7%] [Ref: Entry dated Oct. 1] ($1,000,000/$4)-5,000+5,000-1,000]x$0.85] Mar. 20 Treasury Stock Cash Oct. Cash Dividends (Preferred) Dividends Pavable Dividends Payable Nov. 1 Cash Dec. 1 Cash Dividends (Common) $211,650 $276,500 $211,650 Dividends Pavable Dec. 31 Income Summary Retained Earnings Dec. 31 Dividends Payable [Ref: Entry dated Dec. 1] Cash

Requirement-(b) [T-Accountsl: Common Stock Addl. Paid in Capital in Excess of Stated - Common Beg. Bal Feb. 1 End. Bal $1,000,000 $20,000 $1,020,000 Beg. Bal Feb. 1$10,000 End. Bal $480,000 $490,000 Preferred Stock Addl. Paid in Capital in Excess of Par Preferred Beg. Bal $300,000 Beg. Bal $15,000 End. Bal End. Bal $15,000 Cash Dividends Retained Earnings $232,650 Beg. Bal Dec. 31 End. Bal $21,000 Dec. 31 $232,650 Oct. 1 Dec. 1 End. Bal. $685,500 $276,500 $729,350 Dec. 31 $211,650 S0 Treasury Stock Beg. Ba Mar. 20 End. Bal. $40,000 $7,000

Requirement-(c Blue Spruce Corp Balance Sheet (Partial) December 31, 2017 Stockholders' Equity: Contributed Capital (or) Paid-in-Capital: Capital Stock 7% Preferred Stock ($100 par noncumulative, 5,000 shares authorized) Common stock ($4 stated value, 300,000 shares authorized) Total Capital Stock 300,000 $1,020,000 $1,320,000 Additional Pad-in-Capital: Addl. Paid in Capital in Excess of Par - Preferred Addl. Paid in Capital in Excess of Stated - Common Total Additional Paid-in-capital $15,000 $490,000 Total Paid-in-capital Retained Earnings Paid-in-Capital and Retained Earnings Treasury Stock (6,000 shares) Total Stockholders' Equity $505,000 $1,825,000 $729,350 $2,554,350 ($47,000) $2,507,350

Others 84.14% Payout ratio Earnings per share Ret. on CSHS Equity [Cash dividends / Net income-$232,650 / $276,500-84.14%) [(Net income-Pref. dividend) / Common shares outstanding = ($276,500-$21,000) / ($1,020,000/$4)-$1.00] [(Net income-Pref. dividend) / Average Common Stockholders' Equity: ($276,500-$21,000) / $2,158,925-11.83%) $1.00 11.83% Workings: Beginning Ending $1,000,000 $1,020,000 Common Stock Addl. PIC in Excess of Stated Common Treasury Stock Retained Earnings Common Stockholders' Equity $480,000 $40,000 $490,000 -$47,000 $685,500 $729,350 $2,125,500 $2,192,350 Average Common Stockholders' Equity $2,158,92!5 [($2,125,500$2,192,350)/2]