accounting t accounts and balance sheet 458820

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Accounting 201 Section 70 / Ch 11 assignment

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P11-2A

The stockholders’ equity accounts of Sigma Corporation on January 1, 2010, were as follows.

Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized)	$300,000
Common Stock ($5 stated value, 300,000 shares authorized)	1,000,000
Paid-in Capital in Excess of Par Value – Preferred Stock	15,000
Paid-in Capital in Excess of Stated Value – Common Stock	480,000
Retained Earnings	688,000
Treasury Stock – Common (5,000 shares)	40,000

During 2010 the corporation had these transactions and events pertaining to its stockholders’ equity.

Feb. 1	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 8% 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, 2010.
Dec. 31	Determined that net income for the year was $280,000. Paid the dividend declared on December 1.


	Incorrect.

Journalize the transactions. (Include entries to close net income to Retained Earnings. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date	Account/Description	Debit	Credit
Feb. 1	Cash	30,000
	Common Stock		25,000
	Paid-in Capital in Excess of Stated Value-Common Stock		5,000
Mar. 20	Treasury Stock	7,000
	Cash		7,000
Oct. 1	Cash Dividends	24,000
	Dividends Payable		24,000
Nov. 1	Dividends Payable	24,000
	Cash		24,000
Dec. 1	Cash Dividends	99,500
	Dividends Payable		99,500
Dec. 31	Income Summary	280,000
	Retained Earnings		280,000
	(To close income summary)


	(To close dividends)
	Dividends Payable
	Cash
	(To pay dividends)


	Incorrect.

Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Use T accounts.) (If answer is zero please enter 0, do not leave any fields blank.)

Preferred Stock				Paid-in Cap. in Excess of Par Value – Pref. Stock
1/1	0	1/1	300,000	1/1	0	1/1	15,000
12/31 Bal.	0	12/31 Bal.	300,000	12/31 Bal.	0	12/31 Bal.	15,000

Common Stock				Paid-in Cap. in Exc. of Stated Value – Comm. Stock
1/1 Bal.	0	1/1 Bal.	1,000,000	1/1 Bal.	0	1/1 Bal.	480,000
2/1	0	2/1	25,000	2/1	0	2/1	5,000
12/31 Bal.	0	12/31 Bal.	1,025,000	12/31 Bal.	0	12/31 Bal.	485,000

Retained Earnings				Treasury Stock – Common
12/31		1/1 Bal.	688,000	1/1 Bal.	40,000	1/1 Bal.	0
12/31	0	12/31	280,000	3/20	7,000	3/20	0
12/31 Bal.	0	12/31 Bal.		12/31 Bal.	47,000	12/31 Bal.	0

Cash Dividends
10/1	24,000	10/1	0
12/1	99,500	12/31
12/31 Bal.		12/31 Bal.	0


	Incorrect.

Complete the stockholders’ equity section of the balance sheet at December 31, 2010 below. (If amount should be deducted please put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

SIGMA CORPORATION
Partial Balance Sheet
December 31, 2010
Stockholders’ equity
Paid-in capital
Capital stock
8% Preferred stock,
$100 par value, noncumulative,
5,000 shares authorized,
3,000 shares issued and outstanding	$ 300,000
Common stock,
no par, $5 stated value
300,000 shares authorized,
shares issued
and shares outstanding
Total capital stock		$
Additional paid-in capital
In excess of par value-preferred stock	15,000
In excess of stated value-common stock	485,000
Total additional paid-in capital		500,000
Total paid-in capital
Retained earnings
Total paid-in capital and retained earnings
Less: Treasury stock
( 6,000 common shares)		-47,000
Total Stockholders’ Equity		$


	Incorrect.

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity ratio. (Note: Use the common shares outstanding on January 1 and December 31 to determine average shares outstanding.) (Round all ratios to 1 decimal place, e.g. 25.5 and earnings per share to 2 decimal places, e.g. 2.25.)

Payout ratio	35.5 %
Earnings per share	$
Return on common stockholders’ equity	%

Question Attempts: 2 of 3 used

Journal is correct but t and balance are not all correct help!

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