The balance sheet of Consolidated Paper, Inc., included the following shareholders equity accounts at December 31, 2020:

Paid-in capital:
Preferred stock, 7.5%, 88,000 shares at $1 par	$	88,000
Common stock, 383,800 shares at $1 par		383,800
Paid-in capitalexcess of par, preferred		1,505,000
Paid-in capitalexcess of par, common		2,555,000
Retained earnings		8,845,000
Treasury stock, at cost; 3,800 common shares		(41,800	)
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.

1. 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.
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 $11 per share.
3. On July 5, a 3% common stock dividend was declared and distributed. The market value of the common stock was $11 per share.
4. 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.
5. 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.

equired" in the first account field.)

No	Date	General Journal	Debit	Credit
1	March 03	Investment in equity securitiesselected answer correct	18,000selected answer correct	not attempted
		Gain on investmentsselected answer correct	not attempted	18,000selected answer correct
2	March 03	Retained earningsselected answer correct	980,000selected answer correct	not attempted
		Property dividends payableselected answer correct	not attempted	980,000selected answer correct
3	March 15	Property dividends payableselected answer incorrect	980,000selected answer incorrect	not attempted
		Investment in equity securitiesselected answer incorrect	not attempted	980,000selected answer incorrect
4	March 31	No journal entry requiredselected answer incorrect	not attempted	not attempted
5	May 03	Paid-in capital - excess of par, commonselected answer correct	95,000selected answer correct	not attempted
		Common stockselected answer correct	not attempted	95,000selected answer correct
6	July 05	Retained earningsselected answer correct	104,500selected answer incorrect	not attempted
		Common stockselected answer correct	not attempted	9,500selected answer incorrect
		Paid-in capital - share repurchaseselected answer incorrect	not attempted	95,000selected answer incorrect
7	December 01	Retained earningsselected answer correct	6,600selected answer correct	not attempted
		Cash dividends payableselected answer correct	not attempted	6,600selected answer correct
8	December 20	Cash dividends payableselected answer incorrect	6,600selected answer incorrect	not attempted
		Cashselected answer incorrect	not attempted	6,600selected answer incorrect
9	December 28	Retained earningsselected answer incorrect	293,550selected answer incorrect	not attempted
		Cash dividends payableselected answer incorrect	not attempted	293,550selected answer incorrect

CONSOLIDATED PAPER, INC.
[Shareholders Equity section]
December 31, 2021
Paid-in capital:
Preferred stockselected answer correct	$88,000selected answer correct
Common stockselected answer correct	493,050selected answer correct
Paid-in capital - excess of par, preferredselected answer correct	1,505,000selected answer correct
Paid-in capital - excess of par, commonselected answer correct	2,555,000selected answer incorrect
not attempted	not attempted
Treasury stockselected answer correct	(41,800)selected answer correct
Total shareholders equity	$4,599,250