required information the following information applies to the questions displayed below. the equity sections…

required information the following information applies to the questions displayed below. 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 paid - in capital in excess of par value, common stock retained earnings total stockholders’ equity $175,000 135,000 360,000 $670,000 stockholders’ equity (december 31) common stock - $5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury paid - in capital in excess of par value, common stock retained earnings ($60,000 restricted by treasury stock) less cost of treasury stock total stockholders’ equity $206,000 178,400 440,000 824,400 (60,000) $764,400 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. required: 1. how many common shares are outstanding on each cash dividend date? atticus group january 5 april 5 july 5 october 5 outstanding common shares 35,000 31,000 31,000

required information the following information applies to the questions displayed below. 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 paid - in capital in excess of par value, common stock retained earnings total stockholders’ equity $175,000 135,000 360,000 $670,000 stockholders’ equity (december 31) common stock - $5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury paid - in capital in excess of par value, common stock retained earnings ($60,000 restricted by treasury stock) less cost of treasury stock total stockholders’ equity $206,000 178,400 440,000 824,400 (60,000) $764,400 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. required: 1. how many common shares are outstanding on each cash dividend date? atticus group january 5 april 5 july 5 october 5 outstanding common shares 35,000 31,000 31,000

Answer

Explanation:

Step1: Determine initial outstanding shares

On January 1, 35,000 shares are issued and outstanding. So on January 5 (first - cash - dividend date), the number of outstanding common shares is 35,000.

Step2: Calculate outstanding shares after treasury - stock purchase

On March 20, treasury stock is purchased. The number of outstanding shares = Initial outstanding shares - Treasury stock purchased. Since 4,000 shares are in treasury at the end of the year and assuming no other changes in the number of shares between March 20 and April 5, the number of outstanding shares on April 5 is 35,000 - 4,000=31,000.

Step3: Note no change in outstanding shares before July 5

There is no transaction that affects the number of outstanding shares between April 5 and July 5. So the number of outstanding shares on July 5 is also 31,000.

Step4: Note no change in outstanding shares before October 5

There is no transaction that affects the number of outstanding shares between July 5 and October 5 (the stock - dividend declared on July 31 does not affect the number of outstanding shares for cash - dividend calculation). So the number of outstanding shares on October 5 is 31,000.

Answer:

Atticus Group January 5 April 5 July 5 October 5
Outstanding common shares 35,000 31,000 31,000 31,000