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-$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $ 175,000 Paid-in capital in excess of par value, common stock 135,000 Retained earnings 340,000 Total stockholders' equity $ 650,000 Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury $ 206,000 Paid-in capital in excess of par value, common stock 178, 400 Retained earnings ($30,000 restricted by treasury stock) 420,000 804, 400 Less cost of treasury stock (30,000) Total stockholders' equity $ 774,400 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 $12 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. How much net income did the company earn this year?
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-$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $ 175,000 Paid-in capital in excess of par value, common stock 135,000 Retained earnings 340,000 Total stockholders' equity $ 650,000 Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury $ 206,000 Paid-in capital in excess of par value, common stock 178, 400 Retained earnings ($30,000 restricted by treasury stock) 420,000 804, 400 Less cost of treasury stock (30,000) Total stockholders' equity $ 774,400 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 $12 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. How much net income did the company earn this year?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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Transcribed Image Text: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-$5 par value, 100,000 shares authorized, 35,000 shares issued and
outstanding $ 175,000 Paid-in capital in excess of par value, common stock 135,000 Retained earnings 340,000 Total
stockholders' equity $ 650,000 Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares
authorized, 41,200 shares issued, 4,000 shares in treasury $ 206,000 Paid-in capital in excess of par value, common
stock 178, 400 Retained earnings ($30,000 restricted by treasury stock) 420,000 804, 400 Less cost of treasury stock
(30,000) Total stockholders' equity $ 774,400 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 $12 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. How much net income did the company earn this year?
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