zdfdxcx **** You did NOT answer this question correctly the last time. The only
ID: 2778984 • Letter: Z
Question
zdfdxcx **** You did NOT answer this question correctly the last time. The only answer that was correct was part 4. (When you answered that the cost per share was 12.5) Otherwise all the other answers were wrong. :(
Please help!
The questions below can be answered with the information posted immediately below the questions. Please help. :)
PROBLEM #1
How many shares are outstanding on each cash dividend date?
OUTSTANDING COMMON SHARES
Jan 5 ___
April 5 ___
July 5 ___
October 5 ___
PROBLEM #2
What is the total dollar amount for each of the four cash dividends?
CASH DIVIDEND AMOUNTS
Jan 5 ___
April 5 ___
July 5 ___
October 5 ___
PROBLEM #3
What is the amount of the capitalization of retained earnings for the stock dividend?
CAPITALIZATION AMOUNT ________________
PROBLEM #4
What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places)
COST PER SHARE ___________
PROBLEM #5
How much net income did the company earn during year 2014?
NET INCOME ________________________
Problem 11-4A Analysis of changes in stockholders' equity accounts LO C3, P2, P3
[The following information applies to the questions displayed below.]
The equity sections from Atticus Group’s 2013 and 2014 year-end balance sheets follow.
Stockholders’ Equity (December 31, 2013)
Common stock—$5 par value, 50,000 shares
authorized, 40,000 shares issued and outstanding
$
200,000
Paid-in capital in excess of par value, common stock
160,000
Retained earnings
360,000
Total stockholders’ equity
$
720,000
Stockholders’ Equity (December 31, 2014)
Common stock—$5 par value, 50,000 shares
authorized, 47,200 shares issued, 4,000 shares in treasury
$
236,000
Paid-in capital in excess of par value, common stock
210,400
Retained earnings ($50,000 restricted by treasury stock)
420,000
866,400
Less cost of treasury stock
(50,000
)
Total stockholders’ equity
$
816,400
The following transactions and events affected its equity during year 2014.
Jan.
5
Declared a $0.50 per share cash dividend, date of record January 10.
Mar.
20
Purchased treasury stock for cash.
Apr.
5
Declared a $0.50 per share cash dividend, date of record April 10.
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 is $12 per share.
Aug.
14
Issued the stock dividend that was declared on July 31.
Declared a $0.50 per share cash dividend, date of record October 10.
The equity sections from Atticus Group’s 2013 and 2014 year-end balance sheets follow.
Explanation / Answer
Problem 1 & Problem 2
jan 5 shares are 72000 shares
Dividend on jan 5 is 72000* 0.5 => $36000
October 5 shares are 47200 + 42080 => 89280 shares
Dividend on October 5 = 89280* 0.5 => $44640
Problem 3
Stock capitalization = 89280 shares *5 per share => 446400*20% => 89280
CAPITALIZATION AMOUNT $ 89280
Problem 4
COST PER SHARE = 50000/4000 => 12.5 per share
Problem 5
NET INCOME = $420000 - $ 360000
NET INCOME => $60000
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