[The following information applies to the questions displayed below] The equity sections for Atticus Group at...

Transcribed Image Text:

[The following information 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-$4 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 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 41,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($40,000 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 March 20 April 5 July 5 July 31 August 14 October 5 Declared a $0.40 per share cash dividend, date of record January 10. Purchased treasury stock for cash. $ 140,000 100,000 340,000 $ 580,000 Declared a $0.40 per share cash dividend, date of record April 10. Declared a $0.40 per share cash dividend, date of record July 10. 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. Declared a $0.40 per share cash dividend, date of record October 10. $ 165,600 151,200 420,000 736,800 (40,000) $ 696,800 Required: 1. How many common shares are outstanding on each cash dividend date? January 5 April 5 July 5 October 5 Outstanding common shares 35,000 72,800 2. What is the total dollar amount for each of the four cash dividends? Cash dividend amounts $ January 5 14,000 April 5 July 5 October 5 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? Capitalization amount 4. What is the per share cost of the treasury stock purchased? Note: Round your answer to 2 decimal places. Cost per share 5. How much net income did the company earn this year? Net income [The following information 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-$4 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 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 41,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($40,000 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 March 20 April 5 July 5 July 31 August 14 October 5 Declared a $0.40 per share cash dividend, date of record January 10. Purchased treasury stock for cash. $ 140,000 100,000 340,000 $ 580,000 Declared a $0.40 per share cash dividend, date of record April 10. Declared a $0.40 per share cash dividend, date of record July 10. 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. Declared a $0.40 per share cash dividend, date of record October 10. $ 165,600 151,200 420,000 736,800 (40,000) $ 696,800 Required: 1. How many common shares are outstanding on each cash dividend date? January 5 April 5 July 5 October 5 Outstanding common shares 35,000 72,800 2. What is the total dollar amount for each of the four cash dividends? Cash dividend amounts $ January 5 14,000 April 5 July 5 October 5 3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? Capitalization amount 4. What is the per share cost of the treasury stock purchased? Note: Round your answer to 2 decimal places. Cost per share 5. How much net income did the company earn this year? Net income