Question

     Stockholders’ Equity (December 31, 2015)    Common stock—$5 par value, 50,000 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, 2016)     Common stock—$5 par value, 50,000 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 ($50,000 restricted by treasury stock) 440,000    824,400   Less cost of treasury stock (50,000)   Total stockholders’ equity$774,400  
 The following transactions and events affected its equity during year 2016.   
 Jan.5Declared a $0.40 per share cash dividend, date of record January 10.Mar.20Purchased treasury stock for cash.Apr.5Declared a $0.40 per share cash dividend, date of record April 10.July5Declared a $0.40 per share cash dividend, date of record July 10.July31Declared a 20% stock dividend when the stock’s market value is $12 per share.Aug.14Issued the stock dividend that was declared on July 31.Oct.5Declared a $0.40 per share cash dividend, date of record October 10.
 6. value:1.25 points Required information   Required:1.How many common shares are outstanding on each cash dividend date?        References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work

 7. value:1.25 points Required information   2.What is the total dollar amount for each of the four cash dividends?        References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work

 8. value:1.25 points Required information   3.What is the amount of the capitalization of retained earnings for the stock dividend?        References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work

 9. value:1.25 points Required information   4.What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)         References eBook & Resources WorksheetLearning Objective: 11-C3 Explain the items reported in retained earnings.Learning Objective: 11-P3 Record purchases and sales of treasury stock and the retirement of stock.Difficulty: 3 HardLearning Objective: 11-P2 Record transactions involving cash dividends, stock dividends, and stock splits.Check my work

 10. value:1.25 points Required information   5.How much net income did the company earn during year 2016?

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