FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows:
Contributed capital:
Common shares, 47,300 shares authorized; 24,480 and 21,900 shares
issued and outstanding, respectively.
Retained earnings
Required:
1. How many shares were outstanding on each of the cash dividend dates?
The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky):
Jan. 5 A $1.40 per share cash dividend was declared, and the date of record was five days later.
Mar. 20 1,500 common shares were repurchased and retired at $20.30 per share.
Outstanding shares
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 $38.00 per share.
Aug. 14 The share dividend was issued.
Oct. 5 A $1.90 per share cash dividend was declared, and the date of record was five days later.
Jan. 5
Apr. 5
2021
July 5
2020
Oct. 5
$559,160 $444,570
569,100 594,900
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Transcribed Image Text:The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 47,300 shares authorized; 24,480 and 21,900 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.40 per share cash dividend was declared, and the date of record was five days later. Mar. 20 1,500 common shares were repurchased and retired at $20.30 per share. Outstanding shares 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 $38.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $1.90 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Apr. 5 2021 July 5 2020 Oct. 5 $559,160 $444,570 569,100 594,900
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