4. Prepare the journal entries for 2021 and 2022 to record(a) the cash contribution to plan assets and (b) the benefit payments to retirees II. (20 points) Below is the shareholders' cquity section of the balance sheet of one company, as of December 31, 2020 Paid-in capital Preferred stock, 8.5%, 84,000 shares at Si par Common stock, 343,400 shares at Si par Paid-in capital excess of par, preferred Paid in capital Encess of par, common Retained earnings Treasury stock, at cost: 3,400 common shares Total shareholders' equity S 84.000 341.200 1.465.000 2.515.000 8445.000 (2000 S12.818.000 During 2021, several events and transactions affected the retained earnings of this company Required: 1. Prepare the appropriate entries for these events. a. On March 3, the board of directors declared a property dividend of 220,000 shares of Leasco International common stock that the company had purchased in January as an investment (book value: $426,000). The investment shares had a fair value of $2 per share and were distributed March 31 to shareholders of record March b. On May 3, a 5-for-4 stock split was declared and distributed. The stock split was effected in the form of a 25% stock dividend. The market value of the Sl par common stock was Sie per share. c. On July 5, a 2% common stock dividend was declared and distributed. The market value of the common stock was SIO per share. d. On December 1, the board of directors declared the & 5% cash dividend the 84.000 preferred shares, payable on December 28 to shareholders of record December 20. e. On December 1, the board of directors declared a cash dividend or so 50 per share on its common shares, payable on December 28 to shareholders of record Desember 20 2. Prepare the shareholders' equity section of the balance sheet at December 31, 2021. Net income for the year was $740,000 4. Prepare the journal entries for 2021 and 2022 to record(a) the cash contribution to plan assets and (b) the benefit payments to retirees II. (20 points) Below is the shareholders' cquity section of the balance sheet of one company, as of December 31, 2020 Paid-in capital Preferred stock, 8.5%, 84,000 shares at Si par Common stock, 343,400 shares at Si par Paid-in capital excess of par, preferred Paid in capital Encess of par, common Retained earnings Treasury stock, at cost: 3,400 common shares Total shareholders' equity S 84.000 341.200 1.465.000 2.515.000 8445.000 (2000 S12.818.000 During 2021, several events and transactions affected the retained earnings of this company Required: 1. Prepare the appropriate entries for these events. a. On March 3, the board of directors declared a property dividend of 220,000 shares of Leasco International common stock that the company had purchased in January as an investment (book value: $426,000). The investment shares had a fair value of $2 per share and were distributed March 31 to shareholders of record March b. On May 3, a 5-for-4 stock split was declared and distributed. The stock split was effected in the form of a 25% stock dividend. The market value of the Sl par common stock was Sie per share. c. On July 5, a 2% common stock dividend was declared and distributed. The market value of the common stock was SIO per share. d. On December 1, the board of directors declared the & 5% cash dividend the 84.000 preferred shares, payable on December 28 to shareholders of record December 20. e. On December 1, the board of directors declared a cash dividend or so 50 per share on its common shares, payable on December 28 to shareholders of record Desember 20 2. Prepare the shareholders' equity section of the balance sheet at December 31, 2021. Net income for the year was $740,000
