Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The equity section from the December 31, 2023 and 2024, balance sheets of Westburne Corporation appeared as follows: 2024 2023 Contributed capital: Common shares, 50,000
The equity section from the December 31, 2023 and 2024, balance sheets of Westburne Corporation appeared as follows:
2024 | 2023 | |||||
Contributed capital: | ||||||
Common shares, 50,000 shares authorized; 24,360 and 22,600 shares issued and outstanding, respectively | $ | 535,920 | $ | 452,000 | ||
Retained earnings | 568,000 | 456,000 | ||||
The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Westburne):
Jan. | 5 | A $1.40 per share cash dividend was declared, and the date of record was five days later. | |||
Mar. | 20 | 2,300 common shares were repurchased and retired at $20.00 per share. | |||
Apr. | 5 | A $1.40 per share cash dividend was declared, and the date of record was five days later. | |||
July | 5 | A $1.40 per share cash dividend was declared, and the date of record was five days later. | |||
July | 31 | A 20% share dividend was declared when the market value was $32.00 per share. | |||
Aug. | 14 | The share dividend was issued. | |||
Oct. | 5 | A $1.40 per share cash dividend was declared, and the date of record was five days later. |
Required: 1. How many shares were outstanding on each of the cash dividend dates?
2. How much profit did the company earn during 2024?
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