Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [ The following information applies to the questions displayed below. ] The equity sections for Atticus Group at the beginning

Required information
Skip to question
[The following information applies to the questions displayed below.]
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 $ 160,000
Paid-in capital in excess of par value, common stock 120,000
Retained earnings 320,000
Total stockholders equity $ 600,000
Stockholders Equity (December 31)
Common stock$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury $ 189,600
Paid-in capital in excess of par value, common stock 179,200
Retained earnings ($30,000 restricted by treasury stock)400,000
768,800
Less cost of treasury stock (30,000)
Total stockholders equity $ 738,800
The following transactions and events affected its equity during the year.
January 5 Declared a $0.50 per share cash dividend, date of record January 10.
March 20 Purchased treasury stock for cash.
April 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 stocks market value was $12 per share.
August 14 Issued the stock dividend that was declared on July 31.
October 5 Declared a $0.50 per share cash dividend, date of record October 10.
3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Fundamentals Essentials Concepts And Examples

Authors: Steven M. Bragg

7th Edition

1642210846, 978-1642210842

More Books

Students also viewed these Accounting questions