oblems Help Save & Exit The equity sections from Atticus Group\'s 2016 and 2017

Question

oblems Help Save & Exit The equity sections from Atticus Group's 2016 and 2017 year-end balance sheets follow Common stock-$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in exceas of par value, conmon atock Retained earninga Total stockholders" equity $ 175,000 135,000 40,000 650,000 Conmon atock-$5 par value, 100,000 shares paid-in capital in excess of par value, common toek Retained earnings (30,000 restricted by treasury stock) Less cost of treasury atock Total stockholdezs' equity authorized, 41,000 shares iasued, 5,000 shares in treasury $205,000 189,000 814,000 30,000 $784,000 The following transactions and events affected its equity during year 2017 Jan. 5 Declared a $0.50 per share eash dividend, date of record Janaary 10 Mar. 20 Purchased treasury stock for eash Apr 5 Declared a $0.50 per share cash dividend, date of record Apzil 10. July 5 Deelared a $0.50 per share eash dividend, date of record July 10 July 31 Declared a 20t stock dividend when the stock'a market value vas $14 per share Aug, 14 Issued the stock dividend that vas declared on July 31 Oct 5 Declared a $0.50 per share cash dividend, date ot record October 10. Required: 1. How many common shares are outstanding on each cash dividend date? 3 5 8 9 0

Explanation / Answer

1) Outstanding Shares on Cash Dividend Date :-

2) Statement of Cash Dividend :-

3) Amount of Capitalization of Retained Earning for Stock Dividend :-

Dividend = (30000*20%) * $14

Dividend = 6000 * $14

Dividend = $84000

4) Per Share Cost = Total Amount of shares / No. of Shares

= $30000 / 5000

= $6

Particulars Jan. Apr. Jul. Oct. Opening Balance 35000 35000 30000 30000 Less : Treasury Stock Purchased as on Mar. (5000) Add : Dividend Share Declared as on july 6000 Closing Balance of shares 35000 30000 30000 36000

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