Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] The equity sections from Atticus Groups 2016 and 2017 year-end balance sheets follow. Stockholders Equity (December

[The following information applies to the questions displayed below.] The equity sections from Atticus Groups 2016 and 2017 year-end balance sheets follow.

Stockholders Equity (December 31, 2016)
Common stock$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $210,000
Paid-in capital in excess of par value, common stock 170,000
Retained earnings 360,000
Total stockholders equity $740,000

Stockholders Equity (December 31, 2017)
Common stock$6 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury $247,200
Paid-in capital in excess of par value, common stock 219,600
Retained earnings ($30,000 restricted by treasury stock) 400,000
866,800
Less cost of treasury stock (30,000)
Total stockholders equity $836,800

The following transactions and events affected its equity during year 2017.

Jan. 5 Declared a $0.60 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.60 per share cash dividend, date of record April 10.
July 5 Declared a $0.60 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 $0.60 per share cash dividend, date of record October 10.image text in transcribedimage text in transcribed
Required: 1. How many common shares are outstanding on each cash dividend date? Jan. 5. Apr. 5 July 5 Oct. 5 Outstanding common shares 2. What is the total dollar amount for each of the four cash dividends? Jan. 5 Apr. 5 July 5 Oct. 5 Cash dividend amounts 3. What is the amount of the capitalization of retained earnings for the stock dividend? Capitalization amount 4. What is the per share cost of the treasury stock purchased? Cost per share 5. How much net income did the company earn during year 2017? Net income

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

Step: 3

blur-text-image

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

Biometric And Auditing Issues Addressed In A Throughput Model

Authors: Waymond Rodgers

1st Edition

1617356530, 978-1617356537

More Books

Students also viewed these Accounting questions