Question
The equity sections from Lynbrook Corporation's 2022 and 2023 balance sheets follow. Stockholders Equity (December 31, 2022) Common stock - $20 par value, 30,000 shares
The equity sections from Lynbrook Corporation's 2022 and 2023 balance sheets follow.
Stockholders Equity (December 31, 2022)
Common stock - $20 par value, 30,000 shares authorized, 17,000 shares issued and outstanding $340,000
Additional paid in capital, common stock 60,000
Retained earnings 270,000
Total stockholders equity $670,000
Stockholders Equity (December 31, 2023) Common stock - $20 par value, 30,000 shares authorized, 19,000 shares issued and 18,000 shares outstanding $380,000
Additional paid in capital, common stock 104,000
Retained earnings 295,200
779,200
Less: treasury stock at cost (40,000)
Total stockholders equity $739,200
The following transactions and events affected its equity during year 2023.
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 declared on October 4.
Nov. 15 Declared a $0.40 per share cash dividend, date of record five days later.
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 charged against 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 year 2023?
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