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28 Sep 2019
[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?
Jan. 5 Apr. 5 July 5 Oct. 5 Outstanding commonshares
2. What is the total dollar amount for each ofthe four cash dividends?
Jan. 5 Apr. 5 July 5 Oct. 5 Cash dividend amounts
3. What is the amount of the capitalization ofretained earnings for the stock dividend?
Capitalization amount
4. What is the per share cost of the treasurystock purchased? (Round your answer to 2 decimalplaces.)
Cost per share
5. How much net income did the company earnduring year 2016?
Net income
[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?
|
2. What is the total dollar amount for each ofthe four cash dividends?
|
3. What is the amount of the capitalization ofretained earnings for the stock dividend?
|
4. What is the per share cost of the treasurystock purchased? (Round your answer to 2 decimalplaces.)
|
5. How much net income did the company earnduring year 2016?
|
Jarrod RobelLv2
28 Sep 2019