Problem 18-8 The balance sheet of Consolidated paper, Inc., included the following shareholders equity accounts at December 31, 2017.

Paid-in capital:
Preferred stock, 8.5%, 84,000 shares at $1 par	$ 84,000
Common stock, 343-400 shares at $1 par	343,400
Paid-in capital-excess of par, preferred	1, 465,000
Paid-in capital-excess of par, common	2,515,000
Retained earnings	8,445,000
Treasury stock, at cost; 3,400 common shares	(34,000)
Total shareholders equity	$12,818,400

1. Prepare the appropriate entries for these events.

1. On March 3 the board of directors declared a property divided of 220,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $426,000). The investment shares has a fair value of $2 per share and were distributed March 31 to shareholders of record March 15.
2. 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 $10 per share.
3. On July 5 a 2% common stock dividend was declared and distributed. The market value of the common stock was $10 per share.
4. On December 1 the board of directors declared the 8.5% cash dividend on the 84,000 preferred shares, payable on December 28 to shareholders of record December 20.
5. On December 1 the board of directors declared a cash dividend of $0.50 per share on its common shares, payable on December 28 to shareholders of record December 20.

Record any necessary adjustments to the Leasco International stock account s a result of the property dividend declaration.

Date	General Journal	Debit	Credit

2. Prepare the shareholders equity section of the balance sheet for Consolidated Paper, Inc., at December 31, 2018. Net income for the year was $740,000.

Consolidated Paper, Inc. (Shareholders Equity section December 31, 2018
Total shareholders eqity