Problem:
Stockholders' Equity (December 31, 2002)
Common Stock - $4 par value, 50,000 shares authorized, 20,000 shares issued and outstanding
$80,000
Contributed capital in excess of par value, common stock
$60,000
Total contributed capital
$140,000
Retained Earnings
$160,000
Total Stockholders' Equity
$300,000
Stockholders' Equity (December 31, 2003)
Common Stock - $4 par value, 50,000 shares authorized,23,700 shares issued,1,500 shares in treasury
$94,800
Contributed capital in excess of par value, common stock
$89,600
Total contributed capital
$184,400
Retained Earnings ($57,200 restricted by Treasury Stock)
$200,000 = 384,400
Less Treasury Stock at Cost
(15,000)
Total Stockholders' Equity
$369,400
The following transactions and events affect its equity accounts during year 2003:
Feb. 15 Declared a $0.50 per share cash dividend, date of record February 20.
Mar. 2 Purchased treasury stock for cash.
May 15 Declared a $0.50 per share cash dividend, date of record May 20.
Aug. 15 Declared a $0.50 per share cash dividend, date of record August 20.
Oct. 4 Declared a 20% stock dividend when the stock's market value is $12 per share.
Oct. 20 Issued a stock dividend that was declared on October 4.
Nov. 15 Declared a $0.50 per share cash dividend, date of record November 20.
Required:
Question 1. How many common shares are outstanding on each cash dividend date?
Question 2. What is the total dollar amount for each of the four cash dividends?
Question 3. What is the amount of the capitalization of retained earnings for the stock dividend?
Question 4. What is the per share cost of the treasury stock purchased?
Question 5. How much net income did the company earn during year 2003?