The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 53,100 shares authorized; 23,280 and 21,000 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? July 5 Outstanding shares The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later. Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share. Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $40.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $2.00 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Profit Apr. 5 2. How much profit did the company earn during 2024? 2024 Oct. 5 2023 $582,000 $462,000 608,500 648,900
The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 53,100 shares authorized; 23,280 and 21,000 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? July 5 Outstanding shares The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later. Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share. Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $40.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $2.00 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Profit Apr. 5 2. How much profit did the company earn during 2024? 2024 Oct. 5 2023 $582,000 $462,000 608,500 648,900
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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Question
![The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows:
Contributed capital:
Common shares, 53,100 shares authorized; 23,280 and 21,000
shares issued and outstanding, respectively.
Retained earnings
Outstanding shares
The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky):
Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later..
Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share.
Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later.
July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later.
July 31 A 20.00% share dividend was declared when the market value was $40.00 per share.
Required:
1. How many shares were outstanding on each of the cash dividend dates?
Aug. 14 The share dividend was issued.
Oct. 5 A $2.00 per share cash dividend was declared, and the date of record was five days later.
Jan. 5
Profit
Saved
Apr. 5
July 5
2. How much profit did the company earn during 2024?
2024
Oct. 5
2023
$582,000 $462,000
608,500 648,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5a78004-ca57-4112-b007-9612d8e5076f%2F8b34065f-14cd-4659-9aa3-d8501ad5e018%2Fxz6gi3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows:
Contributed capital:
Common shares, 53,100 shares authorized; 23,280 and 21,000
shares issued and outstanding, respectively.
Retained earnings
Outstanding shares
The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky):
Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later..
Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share.
Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later.
July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later.
July 31 A 20.00% share dividend was declared when the market value was $40.00 per share.
Required:
1. How many shares were outstanding on each of the cash dividend dates?
Aug. 14 The share dividend was issued.
Oct. 5 A $2.00 per share cash dividend was declared, and the date of record was five days later.
Jan. 5
Profit
Saved
Apr. 5
July 5
2. How much profit did the company earn during 2024?
2024
Oct. 5
2023
$582,000 $462,000
608,500 648,900
![3. Prepare the statement of changes in equity for the year ended December 31, 2024. (Deductible values should be indicated by a
minus sign.)
Balance, January 1
KENTUCKY CORPORATION
Statement of Changes in Equity
For Year Ended December 31, 2024
Common
Shares
Retained
Earnings
Balance, December 31
$
0 $
0
Total Equity
$
$
$
$
$
$
0
0
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5a78004-ca57-4112-b007-9612d8e5076f%2F8b34065f-14cd-4659-9aa3-d8501ad5e018%2Fjmp4f7u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Prepare the statement of changes in equity for the year ended December 31, 2024. (Deductible values should be indicated by a
minus sign.)
Balance, January 1
KENTUCKY CORPORATION
Statement of Changes in Equity
For Year Ended December 31, 2024
Common
Shares
Retained
Earnings
Balance, December 31
$
0 $
0
Total Equity
$
$
$
$
$
$
0
0
0
0
0
0
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