Problem 13-4A Analysis of changes in stockholders equity accounts LO C3, P2, P3

[The following information applies to the questions displayed below.]

The equity sections from Atticus Groups 2013 and 2014 year-end balance sheets follow.

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		179,200
Retained earnings ($30,000 restricted by treasury stock)		400,000
		768,800
Less cost of treasury stock		(30,000	)
Total stockholders equity	$	738,800

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 stocks 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.

References

Section BreakProblem 13-4A Analysis of changes in stockholders equity accounts LO C3, P2, P3

15.

value: 5.00 points

Required information

Problem 13-4A Part 1

Required:
1.	How many common shares are outstanding on each cash dividend date?

References

eBook & Resources

WorksheetDifficulty: HardLearning Objective: 13-P2 Record transactions involving cash dividends, stock dividends, and stock splits.

Problem 13-4A Part 1Learning Objective: 13-C3 Explain the items reported in retained earnings.Learning Objective: 13-P3 Record purchases and sales of treasury stock and the retirement of stock.

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16.

value: 5.00 points

Required information

Problem 13-4A Part 2

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

References

eBook & Resources

WorksheetDifficulty: HardLearning Objective: 13-P2 Record transactions involving cash dividends, stock dividends, and stock splits.

Problem 13-4A Part 2Learning Objective: 13-C3 Explain the items reported in retained earnings.Learning Objective: 13-P3 Record purchases and sales of treasury stock and the retirement of stock.

Ask your instructor a questionCheck my work

17.

value: 5.00 points

Required information

Problem 13-4A Part 3

3.	What is the amount of the capitalization of retained earnings for the stock dividend?

References

eBook & Resources

WorksheetDifficulty: HardLearning Objective: 13-P2 Record transactions involving cash dividends, stock dividends, and stock splits.

Problem 13-4A Part 3Learning Objective: 13-C3 Explain the items reported in retained earnings.Learning Objective: 13-P3 Record purchases and sales of treasury stock and the retirement of stock.

Ask your instructor a questionCheck my work

18.

value: 5.00 points

Required information

Problem 13-4A Part 4

4.	What is the per share cost of the treasury stock purchased?

References

eBook & Resources

WorksheetDifficulty: HardLearning Objective: 13-P2 Record transactions involving cash dividends, stock dividends, and stock splits.

Problem 13-4A Part 4Learning Objective: 13-C3 Explain the items reported in retained earnings.Learning Objective: 13-P3 Record purchases and sales of treasury stock and the retirement of stock.

Ask your instructor a questionCheck my work

19.

value: 5.00 points

Required information

Problem 13-4A Part 5

5.	How much net income did the company earn during year 2014?

References

eBook & Resources

WorksheetDifficulty: HardLearning Objective: 13-P2 Record transactions involving cash dividends, stock dividends, and stock splits.