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.

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 stocks 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.

Required:

1. General Journal

• Declared a $0.50 per share cash dividend, payable on January 10.

• Record payment of the 01/05 dividend.

• Purchased treasury stock for cash. Hint: Use information from the December 31 Stockholders' equity statement. Entry to restrict retained earnings is not required.

• Declared a $0.50 per share cash dividend, payable on April 10.

• Record payment of the 04/05 dividend.

• Declared a $0.50 per share cash dividend, payable on July 10.

• Record payment of the 07/05 dividend.

• Declared a 20% stock dividend when the stock's market value is $12 per share.

• Issued the stock dividend that was declared on July 31.

• Declared a $0.50 per share cash dividend, date of record October 10.

• Record payment of the 10/10 dividend.

• Close income summary to retained earnings

2. calculate the dollar amount of each cash dividend.

Calculation of Cash Dividends
	January 05	April 05	July 05	October 05
How many common shares are outstanding?
Dividend per share
Total cash dividend

3. Calculate the amount of retained earnings to be capitalized as a result of the stock dividend.

Calculate the amount of retained earnings to be capitalized as a result of the stock dividend.

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