Question
Listed below are the transactions that affected the shareholders equity of Branch-Rickie Corporation during the period 20162018. At December 31, 2015, the corporations accounts included:
Listed below are the transactions that affected the shareholders equity of Branch-Rickie Corporation during the period 20162018. At December 31, 2015, the corporations accounts included: |
($ in 000s) | |||
Common stock, 108 million shares at $1 par | $ | 108,000 | |
Paid-in capitalexcess of par | 648,000 | ||
Retained earnings | 870,000 | ||
a. | November 1, 2016, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. |
b. | On March 1, 2017, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.3 million, but were purchased two years previously for $2.0 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. |
c. | On July 12, 2017, the corporation declared and distributed a 8% common stock dividend (when the market value of the common stock was $15 per share). Cash was paid in lieu of fractional shares representing 640,000 equivalent whole shares. |
d. | On November 1, 2017, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. |
e. | On January 15, 2018, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $16 per share. |
f. | On November 1, 2018, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. |
Required: |
1. | Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
1. Record declaration of cash dividend. 2. Record the entry on date of record. 3. Record payment of cash dividend. 4. Record appreciation of investment. 5. Record declaration of property dividends. 6. Record the entry on date of record. 7. Record distribution of property dividends. 8. Record declaration and distribution of stock dividend and settlement of fractional shares. 9. Record declaration of cash dividend. 10. Record the entry on date of record. 11. Record payment of cash dividend. 12. Record declaration and distribution of stock split effected in the form of stock dividend. 13. Record declaration of cash dividend. 14. Record the entry on the date of record. 15. Record payment of cash dividend. |
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