wing account balances were selected from the records of TEAC Corporation at December 31, 2014, after all adjusting entries were completed:
Common stock (par $19; authorized 110,000 shares, issued 43,000 shares, of which 6,000 shares are held as treasury stock) $ 817,000 Capital in excess of par 177,000 Dividends declared and paid in 2014 15,000 Retained earnings, January 1, 2014 82,000 Treasury stock at cost (6,000 shares) 29,000
Net income for the year was $31,000. Restriction on retained earnings equal to the cost of treasury stock held is required by law in this state. The stock price is currently $23.49 per share.
Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)
eBook & Resources
ExerciseLearning Objective: 11-01 Explain the role of stock in the capital structure of a corporation.Learning Objective: 11-04 Discuss dividends and analyze transactions.
Difficulty: HardLearning Objective: 11-03 Describe the characteristics of common stock and analyze transactions affecting common stock.Learning Objective: 11-05 Analyze the dividend yield ratio.
Check my work
Compute and evaluate the dividend yield ratio. (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
Determine the number of shares of stock that received dividends.