The information below is what is needed to answer the items from the picture. Note: I ONLY NEED HELP WITH THE ITEMS IN THE RED BOXES. EVERYTHING ELSE IS RIGHT! Final note: THE RETURN ON COMMON STOCKHOLDER'S EQUITY IS NOT 13.9 or 15.9%. The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value—Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value—Common Stock 489,600 Retained Earnings 699,500 Treasury Stock (4,650 common shares) 37,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,860 shares of common stock for $29,160. Mar. 20 Purchased 1,300 additional shares of common treasury stock at $8 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 $0.70 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 $277,400. Paid the dividend declared on December 1.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.3AP

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The information below is what is needed to answer the items from the picture. Note: I ONLY NEED HELP WITH THE ITEMS IN THE RED BOXES. EVERYTHING ELSE IS RIGHT! Final note: THE RETURN ON COMMON STOCKHOLDER'S EQUITY IS NOT 13.9 or 15.9%.

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

Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized)		$279,000
Common Stock ($5 stated value, 306,000 shares authorized)		1,274,999
Paid-in Capital in Excess of Par Value—Preferred Stock		13,950
Paid-in Capital in Excess of Stated Value—Common Stock		489,600
Retained Earnings		699,500
Treasury Stock (4,650 common shares)		37,200

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

Feb.	1	Issued 4,860 shares of common stock for $29,160.
Mar.	20	Purchased 1,300 additional shares of common treasury stock at $8 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 $0.70 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 $277,400. Paid the dividend declared on December 1.

Less
Paid-in Capital in Excess of Stated Value-Common Stock
Total Stockholders' Equity
2,8
eTextbook and Media
Solution
List of Accounts
Your Answer
Correct Answer
Your answer is partially correct.
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%.)
64
Payout ratio
1.02
Earnings per share
15.9
Return on common stockholders' equity
%24
%24

Prepare the stockholders' equity section of the balance sheet at December 31, 2017.
WHISPERING WINDS CORP.
Partial Balance Sheet
December 31, 2017
Stockholders' Equity
Paid-in Capital
Capital Stock
Preferred Stock
279,000
Common Stock
1,299,299
$4
1,578
Total Capital Stock
Total Additional Paid-in Capital
494,460
Paid-in Capital in Excess of Par Value-Common Stock
13,950
Paid-in Capital in Excess of Par Value-Preferred Stock
508
Total Additional Paid-in Capital
2,086
Total Paid-in Capital
779
Retained Earnings
47
Additional Paid-in Capital
%24
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