Required Information
Problem 13-4A (Algo) Analyzing changes in stockholders' equity accounts LO C3, P2, P3
[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-$5 par value, 100,000 shares authorized, 35,000 shares issued and
outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
$ 175,000
135,000
320,000
$ 630,000
Stockholders' Equity (December 31)
Common stock-$5 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in
treasury
$ 205,000
Paid-in capital in excess of par value, common stock
177,000
Retained earnings ($30,000 restricted by treasury stock)
420,000
802,000
Less cost of treasury stock
(30,000)
Total stockholders' equity
$ 772,000
The following transactions and events affected its equity during the year.
January 5 Declared a $0.60 per share cash dividend, date of record January 10.
March 20 Purchased treasury stock for cash.
April 5 Declared a $0.60 per share cash dividend, date of record April 10.
July 5 Declared a $0.60 per share cash dividend, date of record 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 $0.60 per share cash dividend, date of record October 10.
Problem 13-4A (Algo) Part 3
3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?
Capitalization amount
