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Question 1 The stockholders equity accounts of Miley Corporation on January 1, 2014, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,700 shares authorized) $282,000 Common Stock ($4 stated value, 340,700 shares authorized) 1,090,240 Paid-in Capital in Excess of Par ValuePreferred Stock 14,100 Paid-in Capital in Excess of Stated ValueCommon Stock 272,560 Retained Earnings 695,300 Treasury Stock(4,700 common shares) 37,600 During 2014, the corporation had the following transactions and events pertaining to its stockholders equity. Feb. 1 Issued 5,100 shares of common stock for $30,600. Mar. 20 Purchased 1,260 additional shares of common treasury stock at $8 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 $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. Dec. 31 Determined that net income for the year was $280,900. Paid the dividend declared on December 1. Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Cash 30600 Common Stock 20400 Paid-in Capital in Excess of Stated Value-Common Stock 10200 Treasury Stock 10080 Cash 10080 Cash Dividends 22560 Dividends Payable 22560 Dividends Payable 22560 Cash 22560 Cash Dividends 190792 Dividends Payable 190792 Income Summary 280900 Retained Earnings 280900 (To record net income) Retained Earnings 190792 Cash Dividends 190792 (To close cash dividends) Dividends Payable 190792 Cash 190792 (To record payment of cash dividends payable) Enter the beginning balances in the accounts and post the journal entries to the stockholders equity accounts. (Post entries in the order of journal entries posted in the previous part.) Preferred Stock Common Stock Paid-in Capital in Excess of Par ValuePreferred Stock Paid-in Capital in Excess of Stated ValueCommon Stock Retained Earnings Cash Dividends Treasury Stock Prepare the stockholders equity section of the balance sheet at December 31, 2014. MILEY CORPORATION Partial Balance Sheet December 31, 2014 Preferred Stock $ Common Stock $ Paid-in Capital in Excess of Stated Value-Common Stock Paid-in Capital in Excess of Par Value-Preferred Stock Retained Earnings : Treasury Stock $ Calculate the payout ratio, earnings per share, and return on common stockholders equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.) Payout ratio % Earnings per share $ Return on common stockholders equity %

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