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Please help with journal 15 Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31,
Please help with journal 15
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 105 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $105,000 624,000 840,000 a. 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. b. 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 $1.9 million, but were purchased two years previously for $1.7 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, 2022, the corporation declared and distributed a 5% common stock dividend (when the market value of the common stock was $23 per share). Cash was paid in lieu of fractional shares representing 250,000 equivalent whole shares. d. 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. e. 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 $24 per share. f. 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 $355 million, $420 million, and $480 million for 2021, 2022, and 2023, respectively. No Credit Date General Journal November 0 Retained earnings Cash dividends payable Debit 63,000,00 1 63,000,00 2 November 1. No journal entry required 3 63,000,00 December 0 Cash dividends payable Cash 63,000,00 4 200,000 March 01, 20 Investment in debt securities Gain on investments 200,000 5 1,900,000 March 01, 20 Retained earnings Property dividends payable 1,900,000 6 March 13, 20 No journal entry required 7 1,900,000 April 05, 202 Property dividends payable Investment in debt securitiesStep by Step Solution
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