Need help with this long Accounting Problem!!?

The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows.

Preferred Stock (7%, $100 par noncumulative, 6,000 shares authorized) $360,000

Common Stock ($4 stated value, 360,000 shares authorized) 1,200,000

Paid-in Capital in Excess of Par Value—Preferred Stock 18,000

Paid-in Capital in Excess of Stated Value—Common Stock 576,000

Retained Earnings 825,600

Treasury Stock (6,000 common shares) 48,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Feb. 1: Issued 6,000 shares of common stock for $36,000.

Mar. 20:  Purchased 1,200 additional shares of common treasury stock at $7 per share.

Oct. 1:  Declared a 7% cash dividend on preferred stock, payable November 1.

Nov. 1:  Paid the dividend declared on October 1.

Dec. 1:  Declared a $0.50 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 $335,000. Paid the dividend declared on December 1.

Do the following: 

a) Journalize the transactions.

b) Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. 

c) Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.

d) Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. 

2 Answers

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  • Clive
    Lv 7
    1 month ago

    What does this have to do with personal finance?

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  • Anonymous
    1 month ago

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