The equity sections from Atticus Group's 2015 and 2016 year-end balance sheets follow.
Stockholders' Equity (December 31, 2015)
Common stock-$5 par value, 50,000 shares
authorized, 35,000 shares issued and outstanding $ 175,000
Paid-in capital in excess of par value, common stock 135,000
Retained earnings 340,000
Total stockholders' equity $ 650,000
Stockholders' Equity (December 31, 2016)
Common stock-$5 par value, 50,000 shares
authorized, 41,200 shares issued, 4,000 shares in treasury $ 206,000
Paid-in capital in excess of par value, common stock 178,400
Retained earnings ($50,000 restricted by treasury stock) 440,000
824,400
Less cost of treasury stock (50,000 )
Total stockholders' equity $ 774,400
The following transactions and events affected its equity during year 2016.
Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10.
July 5 Declared a $0.40 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock's market value is $12 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10.
Required:
1. How many common shares are outstanding on each cash dividend date?
References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work
2. What is the total dollar amount for each of the four cash dividends?
References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work
3. What is the amount of the capitalization of retained earnings for the stock dividend?
References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work
4. What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)
References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work
5. How much net income did the company earn during year 2016?