Please do not give solution in image format These account balances at December 31 relate to Sportaid Inc.:$ 51,700 Preferred shares, $0.01,81,350 890,000 shares issued593,000 Retained Earnings3,400 Notes Receivable..Accounts Payable...Accounts ReceivableCommon Shares..Bonds Payable*All dividends were declared in the current year.Sportaid's net income for the period is $119,600 and beginning common shareholders' equity is $681,400, and it declared the full amount of annual dividends on thepreferred shares. What is Sportaid's return on common shareholders' equity?(Round the percentage to the nearest tenth percent, X.X%.)OA. 18.6%O B. 15.7%O C. 16.4%O D. 17.5%***89,00071,80012,500

According to the question given, we need to compute the return on the shareholders' equity.Financial…

These account balances at December 31 relate to Sportaid Inc.: Accounts Payable... Accounts Receivable Common Shares... $ 51,700 Preferred shares, $0.01, 81,350 890,000 shares issued 593,000 Retained Earnings... 3,400 Notes Receivable... Bonds Payable.. *All dividends were declared in the current year. 89,000 71,800 12,500 Sportaid's net income for the period is $119,600 and beginning common shareholders' equity is $681,400, and it declared the full amount of annual dividends on th preferred shares. What is Sportaid's return on common shareholders' equity? (Round the percentage to the nearest tenth percent, X.X%.) O A. 18.6% OB. 15.7% O C. 16.4% O D. 17.5%

These account balances at December 31 relate to Sportaid Inc.: Accounts Payable... Accounts Receivable Common Shares... $ 51,700 Preferred shares, $0.01, 81,350 890,000 shares issued 593,000 Retained Earnings... 3,400 Notes Receivable... Bonds Payable.. *All dividends were declared in the current year. 89,000 71,800 12,500 Sportaid's net income for the period is $119,600 and beginning common shareholders' equity is $681,400, and it declared the full amount of annual dividends on th preferred shares. What is Sportaid's return on common shareholders' equity? (Round the percentage to the nearest tenth percent, X.X%.) O A. 18.6% OB. 15.7% O C. 16.4% O D. 17.5%

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. 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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.