The equity sections from Atticus Groupâs 2015 and 2016 year-endbalance sheets follow. Stockholdersâ Equity (December 31, 2015)Common stockâ$5 par value, 50,000 shares authorized, 35,000 sharesissued and outstanding $ 175,000 Paid-in capital in excess of parvalue, common stock 135,000 Retained earnings 320,000 Totalstockholdersâ equity $ 630,000 Stockholdersâ Equity (December 31,2016) Common stockâ$5 par value, 50,000 shares authorized, 41,200shares issued, 4,000 shares in treasury $ 206,000 Paid-in capitalin excess of par value, common stock 178,400 Retained earnings($50,000 restricted by treasury stock) 420,000 804,400 Less cost oftreasury stock (50,000 ) Total stockholdersâ equity $ 754,400 Thefollowing transactions and events affected its equity during year2016. Jan. 5 Declared a $0.60 per share cash dividend, date ofrecord January 10. Mar. 20 Purchased treasury stock for cash. Apr.5 Declared a $0.60 per share cash dividend, date of record April10. July 5 Declared a $0.60 per share cash dividend, date of recordJuly 10. July 31 Declared a 20% stock dividend when the stockâsmarket value is $12 per share. Aug. 14 Issued the stock dividendthat was declared on July 31. Oct. 5 Declared a $0.60 per sharecash dividend, date of record October 10. 6.value: 10.00pointsRequired information Required: 1. How many common shares areoutstanding on each cash dividend date+ Jan5,April 5,July 5,Oct5What is the total dollar amount for each of the four cashdividends? What is the amount of the capitalization of retainedearnings for the stock dividend? What is the per share cost of thetreasury stock purchased? How much net income did the company earnduring year 2016?
The equity sections from Atticus Groupâs 2015 and 2016 year-endbalance sheets follow. Stockholdersâ Equity (December 31, 2015)Common stockâ$5 par value, 50,000 shares authorized, 35,000 sharesissued and outstanding $ 175,000 Paid-in capital in excess of parvalue, common stock 135,000 Retained earnings 320,000 Totalstockholdersâ equity $ 630,000 Stockholdersâ Equity (December 31,2016) Common stockâ$5 par value, 50,000 shares authorized, 41,200shares issued, 4,000 shares in treasury $ 206,000 Paid-in capitalin excess of par value, common stock 178,400 Retained earnings($50,000 restricted by treasury stock) 420,000 804,400 Less cost oftreasury stock (50,000 ) Total stockholdersâ equity $ 754,400 Thefollowing transactions and events affected its equity during year2016. Jan. 5 Declared a $0.60 per share cash dividend, date ofrecord January 10. Mar. 20 Purchased treasury stock for cash. Apr.5 Declared a $0.60 per share cash dividend, date of record April10. July 5 Declared a $0.60 per share cash dividend, date of recordJuly 10. July 31 Declared a 20% stock dividend when the stockâsmarket value is $12 per share. Aug. 14 Issued the stock dividendthat was declared on July 31. Oct. 5 Declared a $0.60 per sharecash dividend, date of record October 10. 6.value: 10.00pointsRequired information Required: 1. How many common shares areoutstanding on each cash dividend date+ Jan5,April 5,July 5,Oct5What is the total dollar amount for each of the four cashdividends? What is the amount of the capitalization of retainedearnings for the stock dividend? What is the per share cost of thetreasury stock purchased? How much net income did the company earnduring 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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| 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?
