Question Details

The following accounts appear in the ledger of Rowlands 



Ex. 1
The following accounts appear in the ledger of Rowlands Inc. after the books are closed at December 31, 2014.

	Common Stock, $1 par value, 500,000 shares authorized, 400,000 shares
	  issued	$400,000
	Common Stock Dividends Distributable	60,000
	Paid-in Capital in Excess of Par—Common Stock	650,000
	Preferred Stock, $100 par value, 6%, 10,000 shares authorized; 2,000 shares 
	  issued 	200,000
	Retained Earnings 	920,000
	Treasury Stock (10,000 common shares) 	85,000
	Paid-in Capital in Excess of Par—Preferred Stock 	310,000

Instructions
Prepare the stockholders' equity section at December 31, 2014, assuming that retained earnings is restricted for plant expansion in the amount of $200,000.


Ex. 2
The following information is available for Richmond Hill Corporation:

Beginning common stockholders' equity	$700,000
Dividends paid to common stockholders	50,000
Dividends paid to preferred stockholders	30,000
Ending common stockholders' equity	1,000,000
Net income	200,000

Instructions
Based on the preceding information, calculate return on common stockholders' equity.




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