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—$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding$ 160,000Paid-in capital in excess of par value, common stock120,000Retained earnings320,000Total stockholders’ equity$ 600,000 Stockholders’ Equity (December 31) Common stock—$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury$ 189,600Paid-in capital in excess of par value, common stock179,200Retained earnings ($30,000 restricted by treasury stock)400,000 768,800Less cost of treasury stock(30,000)Total stockholders’ equity$ 738,800 The following transactions and events affected its equity during the year. January 5Declared a $0.50 per share cash dividend, payable on January 10.March 20Purchased treasury stock for cash.April 5Declared a $0.50 per share cash dividend, payable on April 10.July 5Declared a $0.50 per share cash dividend, payable on July 10.July 31Declared a 20% stock dividend when the stock’s market value was $12 per share.August 14Issued the stock dividend that was declared on July 31.October 5Declared a $0.50 per share cash dividend, date of record October 10.General Ledger tab - Journalize the transactions related to the notes and accounts payable of Atticus Group. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries.General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab.General Ledger tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits.Cash Dividends tab - Calculate the amount of each cash dividend.Stock Dividend tab - Calculate the amount of retained earnings to be capitalized. Journal entry worksheet2<Record payment of the 01/05 dividend.Journal entry worksheet<32<43Journal entry worksheet<Journal entry worksheet2 3 4Journal entry worksheet4Record Davment of the 04/05 dividend.5Record payment of the 07/05 dividend.Journal entry worksheet56Purchased treasury stock for cash. Hint: Use information from the December31 Stockholders' equity statement. Entry to restrict retained earnings is notrequired.574 5 6 7 85Record payment of the 10/10 dividend.5Issued the stock dividend that was declared on July 31.68696679710771188*****8 ..... 12*****1212121212>>>O>>><<<Journal entry worksheet<Journal entry worksheet21<<2Journal entry worksheetPurchased treasury stock for cash. Hint: Use information from the December31 Stockholders' equity statement. Entry to restrict retained earnings is notrequired.Journal entry worksheet32Journal entry worksheet2 3……...3Declared a $0.50 per share cash dividend, payable on April 10.*****3 45Journal entry worksheet64Declared a $0.50 per share cash dividend, payable on July 10.5 6 7 8 9 10755585Declared a $0.50 per share cash dividend, date dacord October 10.Close income summary to retained earnings.O66Declared a 20% stock dividend when the stock's market value is $12 pershare.69*****7771078812811.....*****12>12121212>>oEO No.No.No.DateJanuary 01DateJanuary 01DateJanuary 01CashCashCommon stockPaid-in capital, CommonRetained earningsIncome summaryTotalDebitCreditPaid-in capital, CommonDebitCreditIncome summaryDebitCreditAccount TitleGeneral Ledger AccountHow many common shares are outstanding?Dividend per shareTotal cash dividendBalance848.000Balance120,000Balance(248,000)No.No.Atticus GroupTrial BalanceJanuary 01, 2021Capitalization of retained earnings due to stock dividend:Number of shares outstanding on July 30Percentage of stock dividendNumber of shares to be issuedAmount to be capitalized per shareTotal amount to be capitalizedDates: January 01DateJanuary 01Calculation of Cash DividendsJanuary 05DateJanuary 01April 05Common stockDebit$Retained earningsDebit$Debitto: January 01July 05CreditCalculate the amount of retained earnings to be capitalized as a result of the stock dividend.Dates: January 01Credit848,000848,000 $Balance160.000Balance320,000CreditVOLEO. Janual y U₂October 05160,000120,000320,000248,000848,000to: January 01

A journal entry is a form of accounting entry that is used to report a business transaction in a…

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, payable on January 10. March 20 Purchased treasury stock for cash. April 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. 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. General Ledger tab - Journalize the transactions related to the notes and accounts payable of Atticus Group. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. General Ledger tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Cash Dividends tab - Calculate the amount of each cash dividend. Stock Dividend tab - Calculate the amount of retained earnings to be capitalized.

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, payable on January 10. March 20 Purchased treasury stock for cash. April 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. 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. General Ledger tab - Journalize the transactions related to the notes and accounts payable of Atticus Group. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. General Ledger tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Cash Dividends tab - Calculate the amount of each cash dividend. Stock Dividend tab - Calculate the amount of retained earnings to be capitalized.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

January 5	Declared a $0.50 per share cash dividend, payable on January 10.
March 20	Purchased treasury stock for cash.
April 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.
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.