Question

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 320,000 Total stockholders’ equity $ 630,000 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. 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.

Required:
1. How many common shares are outstanding on each cash dividend date?
Jan 5

April 5

July 5

Oct. 5

Answer 1

	Jan 6	April 5	July 5	Oct 5
Number of shares outstanding	35000	35000 -4000 shares in treasury 31000	31000	31000+(31200*20%stock dividend ) 31000+6200 37200 shares

Working:

Beginning	35000
Jan 5	35000
Mar 20	35000-4000 Treasury stock repurchased =31000
Apr 5	31000
July 5	31000
July 31	31000(1+.20)= 37200
Aug 14	37200