Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the

Required information

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, 35,000 shares issued and outstanding $ 175,000
Paid-in capital in excess of par value, common stock 135,000
Retained earnings 320,000
Total stockholders equity $ 630,000

Stockholders Equity (December 31)
Common stock$5 par value, 100,000 shares authorized, 41,400 shares issued, 3,000 shares in treasury $ 207,000
Paid-in capital in excess of par value, common stock 192,600
Retained earnings ($40,000 restricted by treasury stock) 420,000
819,600
Less cost of treasury stock (40,000)
Total stockholders equity $ 779,600

The following transactions and events affected its equity during the year.

January 5 Declared a $0.40 per share cash dividend, date of record January 10.
March 20 Purchased treasury stock for cash.
April 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.
August 14 Issued the stock dividend that was declared on July 31.
October 5 Declared a $0.40 per share cash dividend, date of record October 10.

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions