Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections...

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Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. - 13 marks Stockholders' Equity (January 1) Retained earnings Total stockholders' equity 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 120,000 320,000 600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock S 189,600 179,200 400,000 768,800 (30,000) $ 738,800 Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. Declared a $0.50 per share cash dividend, date of record April 10. March 20 Purchased treasury stock for cash. April 5 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. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. Requirements: Provide a detailed answer showing all the computation. (13 marks) 1. How many common shares are outstanding on each cash dividend date? 3 marks 2. What is the total dollar amount for each of the four cash dividends? 2 3. What is the amount of retained earnings transferred to paid- in capital accounts (capitalized) for the stock dividend? 3 4. What is the per share cost of the treasury stock purchased? 2 5. How much net income did the company earn this year? 3 > Question two - Raphael Corporation's balance sheet shows the following stockholders' equity section. - 6 marks Preferred stock-5% cumulative, S par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings 80,000 150,000 $ Total stockholders' equity 280,000 Required: 1. Determine the par values of the corporation's preferred stock and its common stock. 2 marks 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500, compute the total amount paid to (a) preferred shareholders and (b) common shareholders. 4 marks bonus Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. - 13 marks Stockholders' Equity (January 1) Retained earnings Total stockholders' equity 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 120,000 320,000 600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock S 189,600 179,200 400,000 768,800 (30,000) $ 738,800 Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. Declared a $0.50 per share cash dividend, date of record April 10. March 20 Purchased treasury stock for cash. April 5 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. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. Requirements: Provide a detailed answer showing all the computation. (13 marks) 1. How many common shares are outstanding on each cash dividend date? 3 marks 2. What is the total dollar amount for each of the four cash dividends? 2 3. What is the amount of retained earnings transferred to paid- in capital accounts (capitalized) for the stock dividend? 3 4. What is the per share cost of the treasury stock purchased? 2 5. How much net income did the company earn this year? 3 > Question two - Raphael Corporation's balance sheet shows the following stockholders' equity section. - 6 marks Preferred stock-5% cumulative, S par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings 80,000 150,000 $ Total stockholders' equity 280,000 Required: 1. Determine the par values of the corporation's preferred stock and its common stock. 2 marks 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500, compute the total amount paid to (a) preferred shareholders and (b) common shareholders. 4 marks bonus