The equity section for Atticus Group's 2015 and 2016 year-end balance sheets follow.

Stockholders Equity (December 31, 2015)

Common stock$4 par value, 100,000 shares...................$160,000

authorized, 40,000 shares issued and outstanding

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, 2016)

Common stock$4 par value, 100,000 shares.............................$189,600

authorized, 47,400 shares issued, 3,000 shares in treasury

Paid-in capital in excess of par value, common stock...................$179,200

Retained earnings ($30,000 restricted by treasury stock)..............$400,000

$768,000

Less cost of treasury stock.......................................................($30,000)

Total stockholders equity..........................................................$738,800

The following transactions and events affected its equity during year 2016.

Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.

Mar. 20 Purchased treasury stock for cash.

Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.

Jul. 5 Declared a $0.50 per share cash dividend, date of record July 10.

Jul. 31 Declared a 20% stock dividend when the stocks market value is $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.

1. Prepare General Journal entries for each transaction.

2. Calculate the dollar amount of each cash dividend.

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

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