Problem 1 and 2

.nl Metro by T-Mobile e: a 10:11 PM 4 [1. ezto.mheducation.com 1_ Award: 16.66 points The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Paid-in capital: Preferred stack, 7.5%, 88,000 shares at $1 par 3', 88.000 Common stock. 383,300 shares at $1 par 333.800 Paid-in capitalexcess of par, preferred 1,505,000 Paid-in capitalexcess of per, common 2,555,000 Retained earnings 5,845,000 Treasury stock, at cost; 3.800 common shares 141.300) Total shareholders' equity $13,335,000 During 2021, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events. a. On March 3, the board of directors declared a property dividend of 245,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $962,000). The investment shares had a fair value of $4 per share and were distributed March 31 to shareholders of record March 15. 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 $1 par common stock was $11 per share. c. On July 5, a 3% common stock dividend was declared and distributed. The market value of the common stock was $11 per share. d. On December 1, the board of directors declared the 7.5% cash dividend on the 88,000 preferred shares, payable on December 28 to shareholders of record December 20. e. On December 1, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on December 28 to shareholders of record December 20. 2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Inc., at December 31, 2021. Net income for the year was $780,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for these events. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld.) Show lessA View transaction list Journal entry worksheet Record any necessary adjustments to the Equity securities account as a result of the property dividend declaration. Note: Enter debits before credits. all Metro by T-Mobile 10:12 PM ezto.mheducation.com 2. Award: 16.66 points National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 4 million shares at $1 par $ 4,000,000 Paid-in capital-excess of par 16,000,000 Retained earnings 73,000,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 Reacquired 140,000 shares at $7 per share. February 17, 2022 Reacquired 140,000 shares at $4.50 per share. November 9, 2023 Sold 80,000 shares at $6 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $12 million in 2021, $13 million in 2022, and $14 million in 2023. No dividends were paid during the three-year period Complete this question by entering your answers in the tabs below. Req 1 Retired Req 1 Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less A View transaction list Journal entry worksheet 2 3 Record the purchase of shares on February 15, 2021 for retirement. Note: Enter debits before credits. Date General Journal Debit Credit February 15, 2021 Record entry Clear entry View general journal References