Question
The equity sections from Atticus Groups 2015 and 2016 year-end balance sheets follow. Stockholders Equity (December 31, 2015) Common stock$6 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$6 par value, 50,000 shares authorized, 30,000 shares issued and outstanding | $ | 180,000 | |
| Paid-in capital in excess of par value, common stock | 140,000 | ||
| Retained earnings | 340,000 | ||
| Total stockholders equity | $ | 660,000 | |
| Stockholders Equity (December 31, 2016) | |||
| Common stock$6 par value, 50,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury | $ | 210,000 | |
| Paid-in capital in excess of par value, common stock | 170,000 | ||
| Retained earnings ($60,000 restricted by treasury stock) | 420,000 | ||
| 800,000 | |||
| Less cost of treasury stock | (60,000 | ) | |
| Total stockholders equity | $ | 740,000 | |
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 was $12 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. |
2.
value: 5.00 points
Required information
Required:
1. How many common shares are outstanding on each cash dividend date?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
3.
value: 2.00 points
Required information
2. What is the total dollar amount for each of the four cash dividends?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
4.
value: 5.00 points
Required information
3. What is the amount of the capitalization of retained earnings for the stock dividend?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
5.
value: 2.00 points
Required information
4. What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
6.
value: 5.00 points
Required information
5. How much net income did the company earn during year 2016?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.eBook: ecord purchases and sales of treasury stock and the retirement of stock.
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Statistical Audit Automation The Principles Of Statistical Sampling Of Business Accounts
Authors: Nathan Poeschl
1st Edition
B0B17YP1SR, 979-8829041991
