Saint ACC202 Module 2 - Homework - Chapter 11

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 2013 and 2014 year-end balance sheets follow.

Stockholders’ Equity (December 31, 2013)
Common stock—$5 par value, 50,000 shares authorized, 35,000 shares issued and outstanding	$	175,000
Paid-in capital in excess of par value, common stock		135,000
Retained earnings		360,000
Total stockholders’ equity	$	670,000

Stockholders’ Equity (December 31, 2014)
Common stock—$5 par value, 50,000 shares authorized, 41,400 shares issued, 3,000 shares in treasury	$	207,000
Paid-in capital in excess of par value, common stock		167,000
Retained earnings ($40,000 restricted by treasury stock)		400,000
		774,000
Less cost of treasury stock		(40,000	)
Total stockholders’ equity	$	734,000

The following transactions and events affected its equity during year 2014.

Jan.	5	Declared a $0.40 per share cash dividend, date of record January 10.
Mar.	20	Purchased treasury stock for cash.
Apr.	5	Declared a $0.40 per share cash dividend, date of record April 10.
July	5	Declared a $0.40 per share cash dividend, date of record July 10.
July	31	Declared a 20% stock dividend when the stock’s market value is $10 per share.
Aug.	14	Issued the stock dividend that was declared on July 31.
Oct.	5	Declared a $0.40 per share cash dividend, date of record October 10.

references

1.value:
5.00 points

Problem 11-4A Part 1

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

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2.value:
5.00 points

Problem 11-4A Part 2

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

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3.value:
5.00 points

Problem 11-4A Part 3

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

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4.value:
5.00 points

Problem 11-4A Part 4

4.	What is the per share cost of the treasury stock purchased?(Round your answer to 2 decimal places.)

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5.value:
5.00 points

Problem 11-4A Part 5

5.	How much net income did the company earn during year 2014?