Q3. [The following information applies to the questions displayed below Check my
ID: 2533860 • Letter: Q
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Q3.
[The following information applies to the questions displayed below Check my work The equity sections from Atticus Group's 2016 and 2017 year-end balance sheets follow. Stockholders' Equity (December 31, 2016) Common stock-$5 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 $ 200,000 160,000 340,000 $ 700,000 stockholders' Equity (December 31, 2017) Common stock-$5 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($50,eee restricted by treasury stock) $237,000 211,800 420,000 868,800 50,000 $818,800 Less cost of treasury stock . Total stockholders' equity 7 of 7 Next > K PrevExplanation / Answer
1.common shares outstanding on each cash dividend date:
working
as on Jan5 no changes were made to the shares out standing as on december 31 ,2016 and the number of shares outstanding were 40,000.
as on apr 5 , treasury stock of 3000 shares were purchased, resulting in shares outstanding of (40,000 - 3,000)=>37,000 shares.
as on july 5 no changes were made to previous outstanding shares and they remain at 37,000 shares.
as on oct 5 , a stock dividend of 20% is issued on august 14 , which increases the outstanding shares by 20% => 37,000 + 20% =>37,000+7,400 =>44,400 shares.
Jan 5 Apr 5 July 5 Oct 5 Outstanding common shares 40,000 37,000 37,000 44,400Related Questions
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