90.2K

Verified Solution

Link Copied!

mework Problem 11-4A Analyzing changes in stockholders' equity accounts LO C3, P2, P3 [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 Stockholders' Equity (January 1) Common stock-$6 par value, 100,800 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $210,000 17 , 360,000 $740,000 Stockholders' Equity (December 31) Common stock-56 par value, 180,000 shares authorized, 41, 400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($40,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity $248,400 195,600 420,000 864,000 (40,000) $824,000 The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10. July 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value was $10 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct 5 Declared a $0.50 per share cash dividend, date of record October 10. Problem 11-4A Part 1 Required: 1. How many common shares are outstanding on each cash dividend date? Oct. 5 July 5 Jan. 5 Apr. 5 Outstanding common shares Problem 11-4A Part 2 2. What is the total dollar amount for each of the four cash dividends? Jan. 5 Apr. 5 July 5 Oct. 5 N Cash dividend amounts CO 9 10 11 12 Prey. RE of 13 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? Capitalization amount Problem 11-4A Part 4 4. What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.) Cost per share Problem 11-4A Part 5 5. How much net income did the company earn this year? Net income

Answer & Explanation Solved by verified expert

See Answer