1 Problem 11-4A Analysis of changes in stockholders\' equity accounts C3 P2 P3 T

Question

1 Problem 11-4A Analysis of changes in stockholders' equity accounts C3 P2 P3 The equity sections from Atticus Group's 2016 and 2017 year-end balance sheets follow. Stockholders' Equlity (December 31, 2016 Common stock-$4 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.. $160,000 120,000 320.000 $600,000 Stockholders Equity (Dacember 31. 2017) Common stock-$4 par value 100000 sharas authorized, 47.400 shares issuod, 3.000 chares in tressury Paid-in capital in excess of par valué.commion sock Retained eamings $30,000 jesticted by treaaury stock $189,600 179200 400 000 768.800 30000 Less cost of treasury stock Total stockholders'equity marks The following transactions and events affected its equity during year 2017 Type here to search

Explanation / Answer

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3. Total amount of capitalization of retained earnings : 37,000 shares x 20% x $ 12 = $ 88,800

4. Per share cost of treasury stock purchased = $ 30,000 / 3,000 shares = $ 10

5. Net Income earned by the company during 2017 : $ 248,000.

Retained Earnings:

Cash Dividend Date Number of Common Shares Outstanding Jan 5, 2017 40,000 April 5, 2017 37,000 July 5, 2017 37,000 Oct 5, 2017 44,400

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