The equity sections from Atticus Group’s 2015 and 2016 year-end balance sheets f
ID: 2522017 • Letter: T
Question
The equity sections from Atticus Group’s 2015 and 2016 year-end balance sheets follow.
The following transactions and events affected its equity during year 2016.
2.
value:
5.00 points
Required information
Required:
1. How many common shares are outstanding on each cash dividend date?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
3.
value:
2.00 points
Required information
2. What is the total dollar amount for each of the four cash dividends?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
4.
value:
5.00 points
Required information
3. What is the amount of the capitalization of retained earnings for the stock dividend?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
5.
value:
2.00 points
Required information
4. What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record purchases and sales of treasury stock and the retirement of stock.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.
Check my work
6.
value:
5.00 points
Required information
5. How much net income did the company earn during year 2016?
eBook & Resources
eBook: Explain the items reported in retained earnings.eBook: Record transactions involving cash dividends, stock dividends, and stock splits.eBook: ecord purchases and sales of treasury stock and the retirement of stock.
Stockholders’ Equity (December 31, 2015) Common stock—$6 par value, 50,000 sharesauthorized, 30,000 shares issued and outstanding $ 180,000 Paid-in capital in excess of par value, common stock 140,000 Retained earnings 340,000 Total stockholders’ equity $ 660,000
Explanation / Answer
Cash dividend date Shares outstanding Rate of cash dividend Amt of cash dividend 5-Jan 30000 $0.50 $15,000 5-Apr 25000 $0.50 $12,500 (30000-5000) 5-Jul 25000 $0.50 $12,500 5-Oct 30000 $0.50 $15,000 25000+(25000*20%) Ans 1 Cash dividend date Shares outstanding 5-Jan 30000 5-Apr 25000 (30000-5000) 5-Jul 25000 5-Oct 30000 ans 2 Cash dividend date Amt of cash dividend 5-Jan 15000 5-Apr 12500 5-Jul 12500 5-Oct 15000 ans 3 Capitalization of retained earnings 60000 25000*20%*12 ans 4 Per share cost of treasury stock 60000/5000 12 ans 5 Net income 340000+NI-60000-15000-12500-12500-15000= 420000 340000-60000-15000-12500-12500-15000-420000= NI Net income 195000
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