The equity sections from Atticus Group\'s 2015 and 2016 year-end balance sheets
ID: 2794837 • Letter: T
Question
The equity sections from Atticus Group's 2015 and 2016 year-end balance sheets follow Stockholders' Equity (December 31, 2015) Common stock-$4 par value, 50,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 140,000 100,000 360,000 $600,000 Stockholders' Equity (December 31, 2016) Common stock-$4 par value, 50,000 shares 164,000 148,000 420,000 732,000 (40,000) $ 692,000 authorized, 41,000 shares issued, 5,000 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 year 2016 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 was $12 per share. Aug. 14 Issued the stock dividend that was declared on July 31 Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10Explanation / Answer
Ans 1. The number of outstanding stock at the end of each dividend decalerd is as follows.
The last value is calculated as 20% of 30000 and added to it
Ans 2 The dividend paid is .5 per share, and is the amount of dividend is calculated based on the shares calculated . The value is in dollar terms
Ans3. The retained earning at the end of the year for 2015, and the begining of the year for 2016 is $600,000
Total spent is 137500, and retained earning left at the end is 282500. Please note the value of stock dividend is taken out as 6000 * 12(share price). The treasure stock value is $8 is not adjusted in this.
Ans4. The total value of treasure stock is $40,000. The per share price to buy the treasure is $8
5-Jan 5-Apr 5-Jul 5-Oct 35000 30000 30000 36000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.