The equity sections from Hovo Corporations 2015 and 2016 balance sheets follow Stockholders Equity (December 31, 2015) 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 27...

Part 1 Outstanding common shares Feb 15 May 15 Aug 15 Nov 15 Beginning balance 17000 17000 170 ...

The equity sections from Hovo Corporations 2015 and 2016 balance sheets follow. Stockholders Equity (December 31, 2015)

Question:

The equity sections from Hovo Corporation’s 2015 and 2016 balance sheets follow.
Stockholders’ Equity (December 31, 2015)
— $20 par value, 30,000 shares authorized,
17,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . $340,000
Paid-in capital in excess of par value, . . . . . . . . . . . . . . 60,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$670,000
Stockholders’ Equity (December 31, 2016)
— $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, . . . . . . . . . . . . . 104,000
Retained earnings ($40,000 restricted by treasury stock) . . . . . . . . . . . 295,200
779,200
Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,000)
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $739,200
The following transactions and events affected its equity during year 2016.
Feb. 15 Declared a $0.40 per share cash date of record five days later.
Mar. 2 Purchased treasury stock for cash.
May 15 Declared a $0.40 per share cash date of record five days later.
Aug. 15 Declared a $0.40 per share cash date of record five days later.
Oct. 4 Declared a 12.5% stock when the stock’s market value is $42 per share.
Oct. 20 Issued the stock that was declared on October 4.
Nov. 15 Declared a $0.40 per share cash date of record five days later.
Required
1. How many common shares are outstanding on each cash 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 What is the per share cost of the treasury stock purchased?
5. How much net income did the company earn during year 2016?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...