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Home > Business & Careers > Accounting   »   Accounting for Corporations

 
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Old Feb 4, 2007, 05:33 PM
usu0430
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Accounting for Corporations

The equity sections from Jefford Group’s 2002 and 2003 balance sheets follow:


Stockholders’ Equity (December 31, 2002)
Common stock — $4 par value, 100,000 shares
authorized, 40,000 shares issued and outstanding $160,000
Contributed capital in excess of par value, common stock 120,000
Total contributed capital $280,000
Retained earnings 320,000
Total stockholders’ equity $600,000

Stockholders’ Equity (December 31, 2003)
Common stock — $4 par value, 100,000 shares
authorized, 47,400 shares issued, 3,000 in the treasury $189,600
Contributed capital in excess of par value, common stock 179,200
Total contributed capital $368,800
Retained earnings ($30,000 restricted) 400,000
$768,800
Less cost of treasury stock (30,000)
Total stockholders’ equity $738,800


The following transactions and events affect its equity accounts during year 2003:
Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock.
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 Declared a 10% stock dividend when the stock’s market value is $14 per share.
Aug. 14 Issued stock dividend.
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 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 2003?

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This is my assignment for ACC class.
I have no idea how i'm supposed to solve this problem.
I need your help please...

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