Question

Ilhe following intormation 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 31) follow. Stockholders' Equity (January 1) Common stock-$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $210,000 170,000 340,000 $720,000 Stockholders' Equity (December 31) Common stock-$6 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasu Paid-in capital in excess of par value, common stock Retained earnings ($50,000 restricted by treasury stock) $24 206,000 420,000 872,000 (50,000) $822,000 Less cost of treasury stock Total stockholders' equity 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.

Answer in these formats please!! thank you!

Answer 1

Answers

• All working forms part of the answer
• [1]

	05-Jan	05-Apr	05-Jul	05-Oct
Outstanding Common shares	35,000	30,000	30,000	36,000
Working Notes:	Existing as beginning balance	5,000 treasury stock purchased	[ no transaction affected no. of shares	[30000 x 20% stock dividend]
		[35000-5000]	between these dates]	[30000 +6000]

• [2]

Working		05-Jan	05-Apr	05-Jul	05-Oct
A	Outstanding Common shares	35,000	30,000	30,000	36,000
B	Dividend per share	$                       0.50	$                     0.50	$                     0.50	$                     0.50
C = A x B	Answer: Cash Dividends amount	$            17,500.00	$           15,000.00	$           15,000.00	$          18,000.00

• [3]

A	Outstanding shares on Jul 31	30,000
B	Stockdividend rate	20%
C = A x B	No. of stock to be issued as Stock Dividends	6,000
D	Market value per share	$                    12.00
E = C x D	Capitalization amount of Retained Earnings	$            72,000.00

• [4]

A	Treasury Stock value	$            50,000.00
B	No. of shares as Treasury Stock	5,000
C = A/B	Cost per share	$                       10.00

• [5]

Retained earnings - Ending balance	$          420,000.00
Total Cash Dividends	$            65,500.00
Total Stock Dividends	$            72,000.00
Total	$          557,500.00
Less: Retained earnings - Beginning balance	$          340,000.00
Net Income	$          217,500.00