Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

16th Edition

324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140

More Books

Students also viewed these Accounting questions