Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The equity sections from Atticus Groups 2015 and 2016 year-end balance sheets follow. Stockholders Equity (December 31, 2015) Common stock$4 par value, 50,000 shares authorized,

The equity sections from Atticus Groups 2015 and 2016 year-end balance sheets follow.

Stockholders Equity (December 31, 2015)
Common stock$4 par value, 50,000 shares authorized, 30,000 shares issued and outstanding $ 120,000
Paid-in capital in excess of par value, common stock 80,000
Retained earnings 360,000
Total stockholders equity $ 560,000

Stockholders Equity (December 31, 2016)
Common stock$4 par value, 50,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury $ 140,000
Paid-in capital in excess of par value, common stock 110,000
Retained earnings ($60,000 restricted by treasury stock) 400,000
650,000
Less cost of treasury stock (60,000 )
Total stockholders equity $ 590,000

The following transactions and events affected its equity during year 2016.

Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.
July 5 Declared a $0.50 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stocks market value is $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10.

1. How many common shares are outstanding on each cash dividend date?

Outstanding Common Shares: Jan 5. April 5 July 5 Oct 5

2.What is the total dollar amount for each of the four cash dividends?

Cash Dividend Amounts: Jan 5 April 5 July 5 Oct 5

3.What is the amount of the capitalization of retained earnings for the stock dividend?

Capitalization Amount:

4.What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)

Cost Per Share:

5.How much net income did the company earn during year 2016?

Net Income:

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

More Books

Students also viewed these Accounting questions