Reference no: EM132499852
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-$4 par value, 100,000 shares
authorized, 40,000
shares issued and outstanding$160,000
Paid-in capital in excess of par value, common stock 120,000
Retained earnings 320,000
Total stockholders' equity$600,000
Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares
authorized, 47,400
shares issued, 3,000
shares in treasury$189,600
Paid-in capital in excess of par value, common stock 179,200
Retained earnings ($30,000 restricted by treasury stock) 400,000 768,800
Less cost of treasury stock (30,000)
Total stockholders' equity$738,800
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 $12 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.
Required:
Question 1. How many common shares are outstanding on each cash dividend date?
Question 2. What is the total dollar amount for each of the four cash dividends?
Question 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?
Question 4. What is the per share cost of the treasury stock purchased?
Question 5. How much net income did the company earn this year?