Listed below are the transactions that affected the shareholders equity of Branch Rickie Corporation during the period 20212023 At December 31, 2020, the corporations accounts included ($ in thousands) Common stock, 110 million shares at $1 par $ 110,000 Paid in capitalexcess of par 660,000 Retained earnings 890,000 November 1, 2021, the board of directors declared a cash dividend of $0 60 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 On March 1, 2022, 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 5 million, but were purchased two years previously for $2 2 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 On July 12, 2022, the corporation declared and distributed a 6 common stock dividend (when the market value of the common stock was $17 per share) Cash was paid in lieu of fractional shares representing 600,000 equivalent whole shares On November 1, 2022, the board of directors declared a cash dividend of $0 60 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 On January 15, 2023, 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 $18 per share On November 1, 2023, the board of directors declared a cash dividend of $0 45 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 Required 1 Prepare the journal entries that Branch Rickie recorded during the three year period for these transactions 2 Prepare comparative statements of shareholders equity for Branch Rickie for the three year period ($ in 000s) Net income was $380 million, $445 million, and $505 million for 2021, 2022, and 2023, respectively Required 1 Required 2 Prepare comparative statements of shareholders' equity for Branch Rickie for the three year period Net income was $380 million, $445 million, and $505 million for 2021, 2022, and 2023, respectively (Negative amounts should be indicated by a minus sign Enter your answers in thousands (000's) ) BRANCH RICKIE CORPORATION Statement of Shareholders' Equity For the Years Ended Dec 31, 2021, 2022, and 2023 ($ in thousands) Common Stock Additional Paid in Capital Retained Earnings Total Shareholders' Equity Jan 1, 2021 Net income Cash dividends 0 0 0 Dec 31, 2021 Property dividends Common stock dividend Net income Cash dividends Dec 31, 2022 3 for 2 split effected in the form of a stock dividend 0 0 0 0 Net income Cash dividends Dec 31, 2023 $ 0 $ 0 $ 0 $ 0

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

Listed below are the transactions that affected the shareholders equity of Branch-Rickie Corporation during the period 20212023. At December 31, 2020, the corporations accounts included:

	($ in thousands)
Common stock, 110 million shares at $1 par	$	110,000
Paid-in capitalexcess of par		660,000
Retained earnings		890,000

November 1, 2021, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
On March 1, 2022, 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 $2.5 million, but were purchased two years previously for $2.2 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.
On July 12, 2022, the corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $17 per share). Cash was paid in lieu of fractional shares representing 600,000 equivalent whole shares.
On November 1, 2022, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
On January 15, 2023, 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 $18 per share.
On November 1, 2023, the board of directors declared a cash dividend of $0.45 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. 2. Prepare comparative statements of shareholders equity for Branch-Rickie for the three-year period ($ in 000s). Net income was $380 million, $445 million, and $505 million for 2021, 2022, and 2023, respectively. image text in transcribed

Required 1 Required 2 Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period. Net income was $380 million, $445 million, and $505 million for 2021, 2022, and 2023, respectively. (Negative amounts should be indicated by a minus sign. Enter your answers in thousands (000's).) BRANCH-RICKIE CORPORATION Statement of Shareholders' Equity For the Years Ended Dec. 31, 2021, 2022, and 2023 ($ in thousands) Common Stock Additional Paid-in Capital Retained Earnings Total Shareholders' Equity Jan 1, 2021 Net income Cash dividends 0 0 0 Dec. 31, 2021 Property dividends Common stock dividend Net income Cash dividends Dec. 31, 2022 3-for-2 split effected in the form of a stock dividend 0 0 0 0 Net income Cash dividends Dec. 31, 2023 $ 0 $ 0 $ 0 $ 0