Please show ALL work Required information Problem 11-4A Analysis of changes in s

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Please show ALL work

Required information 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 2016 and 2017 year-end balance sheets follow Stockholders' Equity (December 31, 2016) Common stock-$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 175,000 135,000 340,000 650,000 Stockholders' Equity (December 31, 2017) Common stock-$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury 206,000 190,800 420,000 816,800 Paid-in capital in excess of par value, common stock Retained earnings ($40,000 restricted by treasury stock) (40,000) Less cost of treasury stock Total stockholders' equity $776,800 The following transactions and events affected its equity during year 2017 Jan. 5 Declared a $0.60 per share cash dividend, date of record January 10 Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.60 per share cash dividend, date of record April 10 July 5 Declared a $0.60 per share cash dividend, date of record July 10 July 31 Declared a 20% stock dividend when the stock's market value was $14 per share. Aug. 14 Issued the stock dividend that was declared on July 31 Oct. 5 Declared a $0.60 per share cash dividend, date of record October 10 Required: 1. How many common shares are outstanding on each cash dividend date? Jan. 5 Apr. 5 Oct. 5 Outstanding common shares 2. What is the total dollar amount for each of the four cash dividends? Jan. 5 Apr. 5 July 5 Oct. 5 Cash dividend amounts 3. What is the amount of the capitalization of retained earnings for the stock dividend? alization amount 4. What is the per share cost of the treasury stock purchased? Cost per share 5. How much net income did the company earn during year 2017? Net income

Explanation / Answer

5-Jan 35,000 shares 20-Mar 35000-4000= 31000 shares 5-Apr 31000 5-Jul 31000 31-Jul 31000*120%= 37200 (31000+6200 shares) 14-Aug 37,200 5-Oct 37,200 1) shares outstanding 5-Jan 5-Apr 5-Jul 5-Oct outstanding common shares 35,000 31,000 37,200 37,200 2) total dollar amount for each of the four cash dividends 5-Jan 5-Apr 5-Jul 5-Oct outstanding common shares 35,000 31,000 37,200 37,200 per share cash dividend 0.6 0.6 0.6 0.6 total dollar amount 21000 18600 22320 22320 3) capitalization amount (6200*14)= 86800 4) cost per share (40,000/4000) $10 5) Net income 251,040 closing retained earnings (2017) 420,000 Add:total dividend (21000+18600+22320+22320+86800) 171040 591,040 less opening retained earnings (2016) -340,000 Net income for the year 251,040

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