Answered step by step
Verified Expert Solution
Question
1 Approved Answer
see the attach The equity sections from Sierra Group's 2009 and 2010 year-end balance sheets follow. Stockholders' Equity (December 31, 2009) Common stock$5 par value,
see the attach
The equity sections from Sierra Group's 2009 and 2010 year-end balance sheets follow. Stockholders' Equity (December 31, 2009) Common stock$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31, 2010) Common stock$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($40,000 restricted by treasury stock) $175,000 135,000 360,000 $670,000 $206,000 195,600 400,000 801,600 Less cost of treasury stock Total stockholders' equity (40,000) $761,600 The following transactions and events affected its equity during year 2010. Jan. 5 Declared a $.40 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $.40 per share cash dividend, date of record April 10. July 5 Declared a $.40 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value is $14 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $.40 per share cash dividend, date of record October 10. 9. value: 8 points Requirement 1: How many common shares are outstanding on each cash dividend date? Jan. 5 Apr. 5 July 5 Oct. 5 Outstanding Common Shares 10. value: 8 points Requirement 2: What is the total dollar amount for each of the four cash dividends? (Omit the "$" sign in your response.) Jan. 5 Cash Dividend Amounts Apr. 5 $ July 5 $ Oct. 5 $ $ 11. value: 5 points Requirement 3: What is the amount of the capitalization of retained earnings for the stock dividend? (Omit the "$" sign in your response.) Capitalization of retained earnings for small stock dividend $ 12. value: 5 points Requirement 4: What is the per share cost of the treasury stock purchased? (Round you answer to nearest whole dollar amount. Omit the "$" sign in your response.) Cost per share of the treasury stock 13. value: 5 points $ Requirement 5: How much net income did the company earn during year 2010? (Omit the "$" sign in your response.) Net Income $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