1) Academy Driving School reported the following amounts in its financial statements: Year 1Year 2 Number of common shares 12,800 12,800 Net income$42,240 $37,240 Cash dividends paid on common stock$2,700 $2,700 Total stockholders’ equity$370,000 $350,000 Calculate EPS and ROE for year 2. (Round EPS to 2 decimal places and ROE to 1 decimal place.)2) Last year, Rec Room Sports reported earnings per share of $9.50 when its stock price was $332.50. This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the Stock? (Round your answer to 2 decimal places.)3) On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 515,000 shares of stock outstanding. Closing entries are recorded on July 31. what is the necessary journal entries for each date. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.)a) Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 515,000 shares of stock outstanding.b) Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 515,000 shares of stock outstanding.c) Record the entry on the date of payment for the cash dividend.d) Record the entry to close the dividend account to retained earnings.
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