Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Listed below are the transactions the shareholders December 31, 2017, the corporation's accounts included: that affected the shareholders' equity of Branch-Rickie Corporation during the period

image text in transcribed
Listed below are the transactions the shareholders December 31, 2017, the corporation's accounts included: that affected the shareholders' equity of Branch-Rickie Corporation during the period 2018-2020. At Common stock, 107 million shares at $1 par Paid-in capital-excess of pan Retained earnings (S in 000s) $107,000 642,800 860,800 a. November 1, 2018, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to b. On March 1,2019, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that shareholders of record November 15, to be paid December 1 Branch-Rickie was holding as an investment The bonds had a fair value of $2.2 million, but were purchased two years previously for $1.9 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, 2019, the corporation declared and distributed a 6% common stock dMdend (when the market value of the common stock was $14 per share). Cash was paid in lieu of fractional shares representing 420,000 equivalent whole shares ces c d. On November 1,2019, the board of directors declared a cash dividend of $0 80 per share on its common shares, payable to e. On January 15, 2020, the board of directors declared and distributed a 3for-2 stock split effected in the form of a 50% stock shareholders of record November 15, to be paid December 1 dividend when the market value of the common stock was $15 per share t. On November 1, 2020, the board of directors declared a cash dividend of $0 65 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. Net income was $365 million, $430 million, and $490 million for 2018, 2019, and 2020, respectively Complete this question by entering your answers in the tabs below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Pauline Weetman

6th Edition

0273789252, 978-0273789253

More Books

Students also viewed these Accounting questions

Question

Convert to 'base eight. Convert 21 21 nine nine eight

Answered: 1 week ago