GL 1302 - Based on Problem 13-4A Atticus Group LO C3, P2, P3

GL1302 - Based on Problem 13-4A Atticus Group LO C3, P2, P3 The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity January 1 Common stock-$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 160,000 120,000 320,000 $ 600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) $189,600 179,200 400,000 768,800 (30,000) $738,800 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.50 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.50 per share cash dividend, payable on April 10. July 5 Declared a $0.50 per share cash dividend, payable on July 10. July 31 Declared a 20% stock dividend when the stock's market value was $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. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend The following transactions and events affected its equity during the year. Prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend General Ledger tab - Prepare journal entries for each transaction. Cash Dividends tab - Calculate the amount of each cash dividend Stock Dividend tab - Calculate the amount of retained earnings to be capitalized. Journal entry worksheet Record payment of the 01/05 dividend. Note: Enter debits before credits. Date Account Title Debit Credit Jan 10 Record entry Clear entry View general journal Journal entry worksheet 12 Declared a $0.50 per share cash dividend, payable on April 10. Note: Enter debits before credits. Date Account Title Debit Credit Apr 05 Record entry Clear entry View general journal Journal entry worksheet Record payment of the 07/05 dividend. Note: Enter debits before credits. Date Account Title Debit Credit Jul 10 Record entry Clear entry View general journal Journal entry worksheet Declared a 20% stock dividend when the stock'Os market value is $12 per share. Note: Enter debits before credits. Date Account Title Debit Credit Jul 31 Record entry Clear entry View general journal Journal entry worksheet Issued the stock dividend that was declared on July 31. Note: Enter debits before credits. Date Account Title Debit Credit Aug 14 Record entry Clear entry View general journal Journal entry worksheet IIII. Declared a $0.50 per share cash dividend, date of record October 10. Note: Enter debits before credits. Date Account Title Debit Credit Oct 05 Record entry Clear entry View general journal Journal entry worksheet Record payment of the 10/10 dividend. Note: Enter debits before credits. Date Account Title Debit Credit Oct 10 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Note: The ending equity balances should agree with the December 31 Statement of Stockholders' Equity. Dates: Jan 01 to: Dec 31 General Ledger Account Cash Common stock No. Date Debit Credit Balance No. Date Debit Credit Balance Jan 01 848,000 Jan 01 160,000 Paid-in capital, Common Retained earnings No. Date Debit Credit No. Date Debit Credit Balance Balance 120,000 Jan 01 Jan 01 320,000 Income summary No. Date Debit Credit Balance Jan 01 (248,000) Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Atticus Group Trial Balance December 31, 2019 Account Title Debit Credit Cash $ 848,000 Common stock 160,000 Paid-in capital, Common 120,000 Retained earnings 320,000 Income summary 248,000 Total $ 848,000 $ 848,000 Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Calculate the dollar amount of each cash dividend. Dates: Jan 01 Calculation of Cash Dividends January 05 April 05 July 05 October 05 How many common shares are outstanding? Dividend per share Total cash dividend Dates: Jan 01 to: Dec 31 Capitalization of retained earnings due to stock dividend: Number of shares outstanding on July 30 Percentage of stock dividend Number of shares to be issued Amount to be capitalized per share Total amount to be capitalized