The equity sections for Atticus Group at the beginning of the year (January 1) and end...

Transcribed Image Text:

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-$5 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 47,000 shares issued, 5,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($48,000 restricted by treasury stock) Less cost of treasury stock 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. March 20 Purchased treasury stock for cash. April 5 Declared a $0.50 per share cash dividend, date of record April 10. Declared a $0.50 per share cash dividend, date of record July 10. July 5 July 31 August 14 Declared a 20% stock dividend when the stock's market value was $12 per share. Issued the stock dividend that was declared on July 31. $ 200,000 160,000 320,000 $680,000 $ 235,000 209,000 440,000 884,000 (40,000) $ 844,000 October 5 Declared a $0.50 per share cash dividend, date of record October 10, 5. How much net Income did the company earn this year? Answer is complete but not entirely correct. Net income $14,200 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-$5 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 47,000 shares issued, 5,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($48,000 restricted by treasury stock) Less cost of treasury stock 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. March 20 Purchased treasury stock for cash. April 5 Declared a $0.50 per share cash dividend, date of record April 10. Declared a $0.50 per share cash dividend, date of record July 10. July 5 July 31 August 14 Declared a 20% stock dividend when the stock's market value was $12 per share. Issued the stock dividend that was declared on July 31. $ 200,000 160,000 320,000 $680,000 $ 235,000 209,000 440,000 884,000 (40,000) $ 844,000 October 5 Declared a $0.50 per share cash dividend, date of record October 10, 5. How much net Income did the company earn this year? Answer is complete but not entirely correct. Net income $14,200