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1) Journalize the transactions.

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

3) prepare the stockholders equity section of the balance sheet at December 31, 2017.

4) calculate the payout ratio, earnings per share, and return on common stockholders equity.

CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION Problem 11-2A The stockholders' equity accounts of Martinez Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, Common Stock ($4 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 Earnings Treasury Stock (5,000 common shares) 5,000 shares authorized) $300,000 1,000,000 15,000 480,000 689,000 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Mar. 20 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Issued 5,000 shares of common stock for $30,000. Purchased 1,000 additional shares of common treasury stock at $8 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Paid the dividend declared on October 1. Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Determined that net income for the year was $275,700. 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 p statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, sele for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Policy cy & Sons, Inc. All Rights Reserved. A Division of John earch B5

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