on january 1 2012 jason corporation had these stockholders equity accounts 535308

On January 1, 2012, Jason Corporation had these stockholders” equity accounts.

During the year, the following transactions occurred.

Feb. 1 Declared a $0.50 cash dividend per share to stockholders of record on February 15, payable March 1.

Mar. 1 Paid the dividend declared in February.

July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable

July 31. On July 1, the market price of the stock was $25 per share.

31 Issued the shares for the stock dividend.

Dec. 1 Declared a $1 per share dividend to stockholders of record on December

15, payable January 5, 2013.

31 Determined that net income for the year was $500,000. The market price of the common stock on this date was $32.

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 ratio.