Fetzer Company declared a $0.95 per share cash dividend. The company has 400,000 shares authorized, 370,000 shares issued, and 20,000 shares in treasury stock. The number of shares to which the dividend applies is:
a. 30,000.
b. 400,000.
c. 350,000.
d. 370,000.
e. 380,000.
Fetzer Company declared a $0.95 per share cash dividend. The company has 400,000 shares authorized, 370,000 shares issued, and 20,000 shares in treasury stock. The number of shares to which the dividend applies is:
a. 30,000.
b. 400,000.
c. 350,000.
d. 370,000.
e. 380,000.
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Related questions
[The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$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 | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$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 | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| 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 stockâs market value was $14 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. |
Problem 13-4A Part 1
Required:
1. How many common shares are outstanding on each cash dividend date?
The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$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 | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$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 | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| 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 stockâs market value was $14 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. |
Problem 13-4A Part 2
2. What is the total dollar amount for each of the four cash dividends?
Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:
| Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) | $4,800,000 |
| Paid-In Capital in Excess of ParâPreferred Stock | 210,000 |
| Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) | 15,750,000 |
| Paid-In Capital in Excess of ParâCommon Stock | 1,400,000 |
| Retained Earnings | 52,840,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Purchased 87,500 shares of treasury common for $8 per share.
b. Sold 55,000 shares of treasury common for $11 per share.
c. Issued 20,000 shares of preferred 2% stock at $84.
d. Issued 400,000 shares of common stock at $13, receiving cash.
e. Sold 18,000 shares of treasury common for $7.50 per share.
f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
