Problem 11-4A Analysis of changes in stockholders\' equity accounts LO C3, P2, P

Question

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.

The following transactions and events affected its equity during year 2017.

1. How many common shares are outstanding on each cash dividend date?

4. What is the per share cost of the treasury stock purchased?

5. How much net income did the company earn during year 2017?

Stockholders’ Equity (December 31, 2016) Common stock—$4 par value, 100,000 shares
authorized, 40,000 shares issued and outstanding $ 160,000 Paid-in capital in excess of par value, common stock 120,000 Retained earnings 340,000 Total stockholders’ equity $ 620,000 Jan. 5 Apr. 5 July 5 Oct. 5 Outstanding common shares

Explanation / Answer

Solution:-

1. How many common shares are outstanding on each cash dividend date:-

Explanation:-

2. What is the total dollar amount for each of the four cash dividends:-

Explanation:-

3. What is the amount of the capitalization of retained earnings for the stock dividend:-

Explanation:-

4. What is the per share cost of the treasury stock purchased:-

Explanation:-

5. How much net income did the company earn during year 2017:-

Explanation:-

Therefore net income = 209,500

Please Rate or comment if you have any doubt regarding this solution.

Jan 5 Apr 5 July 5 Oct. 5 Outstanding common share

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