Stockholders\' Equity (December 31, 2816) Common stock-$4 par value, 100,000 sha

Question

Stockholders' Equity (December 31, 2816) Common stock-$4 par value, 100,000 shares Paid-in capital in excess of par value, common stock Retained earnings Total stockholders equity authorized, 40,000 shares issued and outstanding $160,ee0 120,000 320,000 $600,000 Part 1 of 5 0 points Stockholders' Equity (December 31, 2017) Common stock-$4 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 ($30,000 restricted by treasury stock) $189,600 179,200 400,00 768,800 (30,000) $738,800 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during year 2017. Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10

Explanation / Answer

Answer 1. 5-Jan 5-Apr 5-Jul 5-Oct Outstanding Common Shares          40,000          37,000          37,000          44,400 Shares Outstanding - Apr -5 = 40,000 Shares (Issued Shares) - 3,000 Shares (Treasury Stock) = 37,000 Shares Shares Outstanding - Jul -5 = 37,000 Shares Shares Outstanding - Oct -5 = 37,000 Shares + (37,000 X 20%) (Stock Dividend) Shares Outstanding - Oct -5 = 44,400 Shares Answer 2. 5-Jan 5-Apr 5-Jul 5-Oct Outstanding Common Shares          40,000          37,000          37,000          44,400 Cash Div. per Share              0.50              0.50              0.50              0.50 Cash Div. Amounts          20,000          18,500          18,500          22,200 Answer 3. Amount of Capitalization of Stock Dividend = 7,400 Shares X $12 = $88,800 Answer 4. Cost Per Share - Treasury Stock = $30,000 / 3,000 Shares = $10 Per Share Answer 5. Net Income Earned -2017 = $248,000 Retained Earnings To Cash Dividends            79,200 By Bal.b/f          320,000 To Stock Dividends            88,800 By Net Income (Bal. Fig.)          248,000 To Balance B/f          400,000          568,000          568,000

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