Question
The equity sections from Hovo Corporations 2013 and 2014 balance sheets follows Stockholders equity (Dec 31,2013) common stock $20 par value, 30,000 shares authorized, 17,000
The equity sections from Hovo Corporations 2013 and 2014 balance sheets follows Stockholders equity (Dec 31,2013) common stock $20 par value, 30,000 shares authorized, 17,000 shares issued and outstanding. ...... $340,000
paid in capital in excess of par value, common stock. ... $60,000
retained earnings. .... $270,000 total stockholders equity. ...$670,000
Stockholders equity (Dec 31,2014) common stock $20 par value, 30,000 shares authorized, 19,000 shares issued, 1,000 shares in treasury. ...$380,000
paid in capital in excess of par value, common stock. .. $104,000
retained earnings. .. ($40,000 restricted by treasury stock )....$295,200
less: cost of treasury stock. ... ($40,000)
total stockholders equity. ... $739,200
The following transactions and events affected it's equity during year 2014.
Feb 15 declared a $0.40 per share cash dividend, date of record five days later.
Mar 2 purchased treasury stock for cash.
May 15 declared a $0.40 per share cash dividend, date of record five days later.
Aug 15 declared a $ 0.40 per share cash dividend, date of record five days later.
Oct 4 declared a 12.5% stock dividend when the stock's market value is $42 per share.
Oct 20 issued the stock dividend that was declared on October 4.
Nov 15 declared a $ 0.40 per share cash dividend, date of record five days later.
Required 1.) how many common shares are outstanding on each cash dividend date? 2.)what is the total dollar amount for each of the four cash dividends? 3.)what is the amount of the capitalization of retained earnings for the stock dividend? 4.)what is the per share cost of the treasury stock purchased? 5.)how much net income did the company earn during 2014?
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