Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and
[The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow Stockholders' Equity (January 1) Common stock-$6 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$6 par value, 100,000 shares authorized, 47,200 shares issued, 4,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.60 per share cash dividend, date of record January 10. Declared a $0.60 per share cash dividend, date of record April 10. Declared a $0.60 per share cash dividend, date of record July 10. Declared a 20% stock dividend when the stock's market value was $12 per share. Issued the stock dividend that was declared on July 31. March 20 April 5 July 5 July 31 August 14 October 5 Purchased treasury stock for cash. Declared a $0.60 per share cash dividend, date of record October 10. $ 240,000 200,000 320,000 $ 760,000 $ 283,200 243,200 420,000 946,400 (30,000) $ 916,400 Required: 1. How many common shares are outstanding on each cash dividend date? Outstanding common shares January 5 40,000 April 5 July 5 October 5 2. What is the total dollar amount for each of the four cash dividends? January 5 April 5 July 5 October 5 Cash dividend amounts 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? Capitalization amount 4. What is the per share cost of the treasury stock purchased? Note: Round your answer to 2 decimal places. Cost per share 5. How much net income did the company earn this year? Net income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started