The equity sections from AtticusGroupâs 2015 and 2016 year-end balance sheets follow.
Stockholdersâ Equity(December 31, 2015) Common stockâ$5 parvalue, 50,000 shares
authorized, 35,000 shares issued andoutstanding $ 175,000 Paid-incapital in excess of par value, common stock 135,000 Retainedearnings 340,000 Totalstockholdersâ equity $ 650,000
Stockholdersâ Equity(December 31, 2016) Common stockâ$5 parvalue, 50,000 shares
authorized, 41,200 shares issued, 4,000shares in treasury $ 206,000 Paid-in capital inexcess of par value, common stock 166,000 Retained earnings($30,000 restricted by treasury stock) 420,000 792,000 Less cost oftreasury stock (30,000 ) Total stockholdersâequity $ 762,000
The following transactions andevents affected its equity during year 2016.
Jan. 5 Declared a $0.40 per share cashdividend, date of record January 10. Mar. 20 Purchased treasury stock forcash. Apr. 5 Declared a $0.40 per share cashdividend, date of record April 10. July 5 Declared a $0.40 per share cashdividend, date of record July 10. July 31 Declared a 20% stock dividendwhen the stockâs market value is $10 per share. Aug. 14 Issued the stock dividend thatwas declared on July 31. Oct. 5 Declared a $0.40 per share cash dividend, date of record October10.
How many common shares are outstanding on each cash dividenddate?
JAN 5
APR 5
JUL 5
OCT 5
. What is the total dollar amountfor each of the four cash dividends?
Declared a $0.40 per share cash dividend, date of record October10.
How many common shares are outstanding on each cash dividenddate?
JAN 5
APR 5
JUL 5
OCT 5
What is the amount of thecapitalization of retained earnings for the stock dividend?
What is the per share cost of the treasury stock purchased?(Round your answer to 2 decimal places.)
How much net income did the company earn during year 2016?
| The equity sections from AtticusGroupâs 2015 and 2016 year-end balance sheets follow. |
| Stockholdersâ Equity(December 31, 2015) | |||
| Common stockâ$5 parvalue, 50,000 shares authorized, 35,000 shares issued andoutstanding | $ | 175,000 | |
| Paid-incapital in excess of par value, common stock | 135,000 | ||
| Retainedearnings | 340,000 | ||
| Totalstockholdersâ equity | $ | 650,000 | |
| Stockholdersâ Equity(December 31, 2016) | |||
| Common stockâ$5 parvalue, 50,000 shares authorized, 41,200 shares issued, 4,000shares in treasury | $ | 206,000 | |
| Paid-in capital inexcess of par value, common stock | 166,000 | ||
| Retained earnings($30,000 restricted by treasury stock) | 420,000 | ||
| 792,000 | |||
| Less cost oftreasury stock | (30,000 | ) | |
| Total stockholdersâequity | $ | 762,000 | |
| The following transactions andevents affected its equity during year 2016. |
| Jan. | 5 | Declared a $0.40 per share cashdividend, date of record January 10. | |||||||||||
| Mar. | 20 | Purchased treasury stock forcash. | |||||||||||
| Apr. | 5 | Declared a $0.40 per share cashdividend, date of record April 10. | |||||||||||
| July | 5 | Declared a $0.40 per share cashdividend, date of record July 10. | |||||||||||
| July | 31 | Declared a 20% stock dividendwhen the stockâs market value is $10 per share. | |||||||||||
| Aug. | 14 | Issued the stock dividend thatwas declared on July 31. | |||||||||||
| Oct. | 5 | Declared a $0.40 per share cash dividend, date of record October10.
|
How much net income did the company earn during year 2016?
Related questions
[The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding | $ | 175,000 |
| Paid-in capital in excess of par value, common stock | 135,000 | |
| Retained earnings | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury | $ | 206,000 | |
| Paid-in capital in excess of par value, common stock | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| Jan. | 5 | Declared a $0.50 per share cash dividend, date of record January 10. | ||
| Mar. | 20 | Purchased treasury stock for cash. | ||
| Apr. | 5 | Declared a $0.50 per share cash dividend, date of record April 10. | ||
| July | 5 | Declared a $0.50 per share cash dividend, date of record July 10. | ||
| July | 31 | Declared a 20% stock dividend when the stockâs market value was $14 per share. | ||
| Aug. | 14 | Issued the stock dividend that was declared on July 31. | ||
| Oct. | 5 | Declared a $0.50 per share cash dividend, date of record October 10. |
Problem 13-4A Part 1
Required:
1. How many common shares are outstanding on each cash dividend date?
The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding | $ | 175,000 |
| Paid-in capital in excess of par value, common stock | 135,000 | |
| Retained earnings | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury | $ | 206,000 | |
| Paid-in capital in excess of par value, common stock | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| Jan. | 5 | Declared a $0.50 per share cash dividend, date of record January 10. | ||
| Mar. | 20 | Purchased treasury stock for cash. | ||
| Apr. | 5 | Declared a $0.50 per share cash dividend, date of record April 10. | ||
| July | 5 | Declared a $0.50 per share cash dividend, date of record July 10. | ||
| July | 31 | Declared a 20% stock dividend when the stockâs market value was $14 per share. | ||
| Aug. | 14 | Issued the stock dividend that was declared on July 31. | ||
| Oct. | 5 | Declared a $0.50 per share cash dividend, date of record October 10. |
Problem 13-4A Part 2
2. What is the total dollar amount for each of the four cash dividends?
[The following information applies to the questionsdisplayed below.]
The equity sections from Atticus Groupâs 2015 and 2016 year-endbalance sheets follow.
| Stockholdersâ Equity (December 31, 2015) | |||
| Common stockâ$6 par value, 50,000 shares authorized, 35,000 shares issued andoutstanding | $ | 210,000 | |
| Paid-in capital in excess of par value, commonstock | 170,000 | ||
| Retained earnings | 340,000 | ||
| Total stockholdersâ equity | $ | 720,000 | |
| Stockholdersâ Equity (December 31, 2016) | |||
| Common stockâ$6 par value, 50,000 shares authorized, 41,400 shares issued, 3,000shares in treasury | $ | 248,400 | |
| Paid-incapital in excess of par value, common stock | 195,600 | ||
| Retained earnings ($40,000 restricted by treasurystock) | 420,000 | ||
| 864,000 | |||
| Lesscost of treasury stock | (40,000 | ) | |
| Total stockholdersâ equity | $ | 824,000 | |
| The followingtransactions and events affected its equity during year 2016. |
| Jan. | 5 | Declared a $0.40per share cash dividend, date of record January 10. |
| Mar. | 20 | Purchasedtreasury stock for cash. |
| Apr. | 5 | Declared a $0.40per share cash dividend, date of record April 10. |
| July | 5 | Declared a $0.40per share cash dividend, date of record July 10. |
| July | 31 | Declared a 20%stock dividend when the stockâs market value is $10 per share. |
| Aug. | 14 | Issued the stockdividend that was declared on July 31. |
| Oct. | 5 | Declared a $0.40per share cash dividend, date of record October 10. |
1. How many common shares are outstanding oneach cash dividend date?
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2. What is the total dollar amount for each ofthe four cash dividends?
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3. What is the amount of the capitalization ofretained earnings for the stock dividend?
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4. What is the per share cost of the treasurystock purchased? (Round your answer to 2 decimalplaces.)
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5. How much net income did the company earnduring year 2016?
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