ACCOUNTING 202 Analysis of changes in stockholders’ equity accounts LO C3, P2, P3
1. Problem 11-4A Analysis of changes in stockholders’ equity accounts LO C3, P2, P3The equity sections from Atticus Group’s 2013 and 2014 year-end balance sheets follows.Stockholders’ Equity (December 31, 2013)Common stock-$4 par value, 50,000 shares authorized, 40,000 shares issued and outstanding $160,000Paid-in capital in excess of par value, common stock 120,000Retained earnings 340,000 ___________Total stockholders’ equity $620,000____________________________________________________________________________________________Stockholders’ Equity (December 31, 2014)Common stock–$4 par value, 50,000 shares authorized, 47,000 shared issued, 5,000 shares in treasury $188,000Paid-in capital in excess of par value, common stock 190,000Retained earnings ($40,000 restricted by treasury stock) __________ 798,000Less cost of treasury stock (40,000) ______________Total stockholders’ equity $758,000________________________________________________________________________________________________The following transactions and events affected its equity during year 2014.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 is $14 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 10.1. How many common shares are outstanding on each cash dividend date? Jan. 5 Apr. 5 July 5 Oct. 5Outstanding common shares __________________________________________________2. What is the total dollar amount for each of the four cash dividends? Jan. 5 Apr.5 July 5 Oct.5Cash dividend amounts ___________________________________________________3. What is the amount of the capitalization of retained earnings for the stock dividend?Capitalization amount __________________________4. What is the per share cost of the treasury stock purchased? (round your answer to 2 decimal places.)Cost per share ______________________________5. How much net income did the company earn during year 2014?Net income _______________________
