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The equity sections from Atticus Groups 2016 and 2017 year-end balance sheets follow. Stockholders Equity (December 31, 2016) Common stock$5 par value, 100,000 shares authorized,
The equity sections from Atticus Groups 2016 and 2017 year-end balance sheets follow.
Stockholders Equity (December 31, 2016) | ||
Common stock$5 par value, 100,000 shares authorized, 30,000 shares issued and outstanding | $ | 150,000 |
Paid-in capital in excess of par value, common stock | 110,000 | |
Retained earnings | 340,000 | |
Total stockholders equity | $ | 600,000 |
Stockholders Equity (December 31, 2017) | |||
Common stock$5 par value, 100,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury | $ | 175,000 | |
Paid-in capital in excess of par value, common stock | 155,000 | ||
Retained earnings ($30,000 restricted by treasury stock) | 440,000 | ||
770,000 | |||
Less cost of treasury stock | (30,000 | ) | |
Total stockholders equity | $ | 740,000 | |
The following transactions and events affected its equity during year 2017.
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 $14 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. |
Problem 13-4A Part 3
3. What is the amount of the capitalization of retained earnings for the stock dividend?
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4. What is the per share cost of the treasury stock purchased?
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5. How much net income did the company earn during year 2017?
Net income |
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