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re P11-8A On January 1, 2017, Tacoma Corporation had these stockholders equity accounts Common Stock ($10 par value, 70,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earnings $700,000 500,000 620,000 During the year, the following transactions occurred.
Comprehensive Account Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable February 15. Jan. 15 Feb. 15 Paid the dividend declared in January Apr. 15 Declared a 10% stock dividend to stockholders ofrecord on April 30, distribut- able May 15. On April 15, the market price of the stock was $14 per share. Issued the shares for the stock dividend. Declared a $0.60 per share cash dividend to stockholders of record on Decem- ber 15, payable January 10, 2018 Determined that net income for the year was $400,000 May 15 Dec. 1 31 Instructions (a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (b) Enter the beginning balances and post the entries to the stockholders equity T-accounts. (Note: Open additional stockholders equity accounts as needed.) (c) Prepare the stockholders equity section of the balance sheet at December 31. (d) Calculate the payout ratio and return on common stockholders equity
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