Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started