4. The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $ 210,000 Paid-in capital in excess of par value, common stock 170,000 Retained earnings 320,000 Total stockholders’ equity $ 700,000 Stockholders’ Equity (December 31) Common stock—$6 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury $ 246,000 Paid-in capital in excess of par value, common stock 218,000 Retained earnings ($40,000 restricted by treasury stock) 400,000 864,000 Less cost of treasury stock (40,000) Total stockholders’ equity $ 824,000 The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $0.50 per share cash dividend, date of record April 10. July 5 Declared a $0.50 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. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. Required: 1. How many common shares are outstanding on each cash dividend date?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.

Stockholders’ Equity (January 1)
Common stock—$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding	$ 210,000
Paid-in capital in excess of par value, common stock	170,000
Retained earnings	320,000
Total stockholders’ equity	$ 700,000

Stockholders’ Equity (December 31)
Common stock—$6 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury	$ 246,000
Paid-in capital in excess of par value, common stock	218,000
Retained earnings ($40,000 restricted by treasury stock)	400,000
	864,000
Less cost of treasury stock	(40,000)
Total stockholders’ equity	$ 824,000

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

January 5	Declared a $0.50 per share cash dividend, date of record January 10.
March 20	Purchased treasury stock for cash.
April 5	Declared a $0.50 per share cash dividend, date of record April 10.
July 5	Declared a $0.50 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.
August 14	Issued the stock dividend that was declared on July 31.
October 5	Declared a $0.50 per share cash dividend, date of record October 10.

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

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