Question

The equity sections from Atticus Group's 2017 and 2018 year-end balance sheets follow.

Stockholders' Equity (December 31, 2017)
Common stock-$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $210,000
Paid-in capital in excess of par value, common stock 170,000
Retained earnings 340,000
Total stockholders' equity $720,000
Stockholders' Equity (December 31, 2018)
Common stock-$6 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury $246,000
Paid-in capital in excess of par value, common stock 194,000
Retained earnings ($30,000 restricted by treasury stock) 440,000
Less cost of treasury stock (30,000)
Total stockholders' equity $850,000
The following transactions and events affected its equity during year 2018.

Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10.
July 5 Declared a $0.40 per share cash dividend, date of record July 10.
July 31 Declare a 20% stock dividend when the stock?s market value was $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10.

Required:

(1) How many common shares are outstanding on each cash dividend date?
(2) What is the total dollar amount for each of the four cash dividends?

Answer 1

Answer:

1. See explanation section

2. See explanation section

Explanation:

See the following images to get the appropriate answers.

Answer 2

(1) The number of common shares outstanding on each cash dividend date is as follows:

Cash Dividend Date     Number of common shares outstanding

Jan. 10,2018                   35,000 shares

Apr. 10, 2018                 30,000 shares

July 10, 2018                30,000 shares

Oct. 10, 2018                36,000 shares

(2) The total dollar amount for each of the four cash dividends is as follows:

Cash Dividend Date     Number of common    Dividend     Dividend

                                      shares outstanding          Rate        Amount

Jan. 5,2018                       35,000 shares            $0.40      $14,000

Apr. 5, 2018                     30,000 shares            $0.40      $12,000

July 5, 2018                    30,000 shares             $0.40      $12,000

Oct. 5, 2018                    36,000 shares            $0.40      $14,400

How is the amount of dividend calculated?

The dollar amount of each cash dividend is computed as the product of the number of common stocks outstanding and the dividend per share.

The important dates for recording dividends and determining the number of outstanding shares are the declaration date, the date of record, and the payment date.

Learn more about calculating dividend amounts at https://brainly.com/question/23156395