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Required information Problem 11-4A (Algo) Analyzing changes in stockholders' equity accounts LO C3, P2, P3 Skip to question [The following information applies to the questions
Required information Problem 11-4A (Algo) Analyzing changes in stockholders' equity accounts LO C3, P2, P3 Skip to question [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$5 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 200,000 Paid-in capital in excess of par value, common stock 160,000 Retained earnings 340,000 Total stockholders equity $ 700,000 Stockholders Equity (December 31) Common stock$5 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury $ 237,000 Paid-in capital in excess of par value, common stock 226,600 Retained earnings ($50,000 restricted by treasury stock) 420,000 883,600 Less cost of treasury stock (50,000 ) Total stockholders equity $ 833,600 The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10. July 5 Declared a $0.40 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stocks market value was $14 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10.
Required information Problem 11-4A (Algo) Analyzing changes in stockholders' equity accounts LO C3, P2, P3 [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-$5 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $200,000 160,000 340,000 $700,000 Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($50,000 restricted by treasury stock) $237,000 226,600 420,000 883,600 (50,000) $833,600 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10. July 5 Declared a $0.40 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value was $14 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10. Problem 11-4A (Algo) Part 1 Required: 1. How many common shares are outstanding on each cash dividend date? Jan. 5 Apr. 5 July 5 Oct. 5 Outstanding common shares 2. What is the total dollar amount for each of the four cash dividends? Jan. 5 Apr. 5 July 5 Oct. 5 Cash dividend amounts 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? Capitalization amountStep by Step Solution
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