Solved by verified expert :Stockholders’ Equity ( December 31, 2011)Common stock—$ 4 par value, 50,000 sharesauthorized, 20,000 shares issued and outstanding . . . . . . . . . . . . . . $ 80,000Paid- in capital in excess of par value, common stock . . . . . . . . . . . . . . . 60,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000Stockholders’ Equity ( December 31, 2012)Common stock—$ 4 par value, 50,000 sharesauthorized, 23,700 shares issued, 1,500 shares in treasury . . . . . . . . . $ 94,800Paid- in capital in excess of par value, common stock . . . . . . . . . . . . . . . 89,600Retained earnings ($ 15,000 restricted by treasury stock) . . . . . . . . . . . 200,000384,400Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .( 15,000)Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 369,400The following transactions and events affected its equity during year 2012.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 is $ 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.Required1. 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?3. What is the amount of the capitalization of retained earnings for the stock dividend?4. What is the per share cost of the treasury stock purchased?5. How much net income did the company earn during year 2012?
