Question

Problem 11-4A Analysis of changes in stockholders' equity accounts LO C3, P2, P3

[The following information applies to the questions displayed below.]

The equity sections from Atticus Group’s 2016 and 2017 year-end balance sheets follow.

Stockholders’ Equity (December 31, 2016)
Common stock—$4 par value, 100,000 shares authorized, 35,000 shares issued and outstanding	$	140,000
Paid-in capital in excess of par value, common stock		100,000
Retained earnings		320,000
Total stockholders’ equity	$	560,000

Stockholders’ Equity (December 31, 2017)
Common stock—$4 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury	$	164,000
Paid-in capital in excess of par value, common stock		148,000
Retained earnings ($60,000 restricted by treasury stock)		420,000
		732,000
Less cost of treasury stock		(60,000	)
Total stockholders’ equity	$	672,000

The following transactions and events affected its equity during year 2017.

Jan.		5		Declared a $0.50 per share cash dividend, date of record January 10.
Mar.		20		Purchased treasury stock for cash.
Apr.		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.
Aug.		14		Issued the stock dividend that was declared on July 31.
Oct.		5		Declared a $0.50 per share cash dividend, date of record October 10.

Problem 11-4A Part 1

Required:
1. How many common shares are outstanding on each cash dividend date?

Answer 1

--Requirement 1 asked, provided with calculation

	05-Jan	05-Apr	05-Jul	05-Oct
Outstanding Common shares	35,000	30,000	30,000	36,000
Working Notes:	Existing as beginning balance	5,000 treasury stock purchased	[ no transaction affected no. of shares	[30000 x 20% stock dividend]
		[35000 - 5000]	between these dates]	[30000 + 6000]