The equity sections from Atticus Group’s 2013 and 2014 year-end balance sheets follow.

The following transactions and events affected its equity during year 2014.
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 stock’s market value is $12 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.
Required 1. How many common shares are outstanding on each cash dividend date?
2. What is the total dollar amount for each of the four cash dividends?
3. What is the amount of the capitalization of retained earnings for the stock dividend?
4. What is the per share cost of the treasury stock purchased?
5. How much net income did the company earn during year 2014?

Transcribed Image Text:

Stockholders' Equity (December 31, 2013) Common stock-$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $160,000 Paid-in capital in excess of par value, common stock 120,000 Retained earnings 320,000 Total stockholders' equity $600,000 Stockholders' Equity (December 31, 2014) Common stock-$4 par value, 100.000 shares authorized, 47,400 shares issued, 3,000 shares in treasury $189,600 Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) 179,200 400,000 768,800 Less cost of treasury stock. Total stockholders' equity (30.000) $738,800