Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer question 1 in the image and parts B - D below: B.) What is the total dollar amount for each of the four

image text in transcribed

Please answer question 1 in the image and parts B - D below:

B.) What is the total dollar amount for each of the four cash dividends?

C.) What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?

D.) How much net income did the company earn this year?

Required information (The following information applies to the questions displayed below.) The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow Stockholders' Equity (January 1) Common stock-$6 par value, 100,000 shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $180,000 140,000 340,000 $660,000 Stockholders' Equity (December 31) Common stock-$6 par value, 100,000 shares authorized, 35,200 shares issued, 4,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($50,000 restricted by treasury stock) $ 211,200 171,200 400,000 782,400 (50,000) $ 732,400 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. 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 was $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? Jan. 5 Apr. 5 July 5 Oct. 5 Outstanding common shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappetta

22nd edition

9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275

Students also viewed these Accounting questions

Question

4 ) - - IC) (chr ) 4 ) - - IC) (chr )

Answered: 1 week ago