Please show work Required information The following informat

Please show work

Required information [The following information applies to the questions displayed below.J 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 $175,000 135,000 360,000 $670,000 Stockholders\' Equity (December 31, 2017) Common stock-$5 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury $205,000 177,000 420,000 802,000 Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock Total stockholders\' equity 30,000) $772,000 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 $12 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 July 5 Oct. 5 Outstanding common shares

Solution

1.

working:

as on jan 5 only 35,000 shares are outstanding as on december 31 2016.

as on apr 5 (35,000 - 5,000 treasury stock =>30,000 shares) are outstanding.

as on july 5 30,000 shares are outstanding, no change in status.

as on oct 5 (30,000 + 20% stock dividend =>36,000 shares) are outstanding .

2.dollar amount of four cash dividends:

3. capitalisation of retained earnings = shares issued as dividend * market price per share

=>6000 shares *$12 =>$72,000.

4.per share cost of treasury stock = tresury stock balance / number of shares purchased as treasury stock

=>$30,000 / 5,000

=>$6.

5. net income earned during 2017 :

ending retained earnings - beginning retained earnings + total cash dividends + total stock dividend

=>420,000 - 360,000 + 78,600 + 72,000

=>$210,600.

	jan 5	apr 5	july 5	oct 5
outstanding common shares	35,000	30,000	30,000	36,000