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

Paid-in capital:
Preferred stock, 8.8%, 87,000 shares at $1 par	$	87,000
Common stock, 373,700 shares at $1 par		373,700
Paid-in capitalexcess of par, preferred		1,495,000
Paid-in capitalexcess of par, common		2,545,000
Retained earnings		8,745,000
Treasury stock, at cost; 3,700 common shares		(37,000	)
Total shareholders' equity	$	13,208,700

During 2021, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events.

On March 3, the board of directors declared a property dividend of 235,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $453,000). The investment shares had a fair value of $2 per share and were distributed March 31 to shareholders of record March 15.

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.

On July 5, a 2% common stock dividend was declared and distributed. The market value of the common stock was $10 per share.

On December 1, the board of directors declared the 8.8% cash dividend on the 87,000 preferred shares, payable on December 28 to shareholders of record December 20.

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.

2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Inc., at December 31, 2021. Net income for the year was $770,000.

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 first account field.)

Journal entry worksheet

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Record any necessary adjustments to the Equity securities account as a result of the property dividend declaration.

Note: Enter debits before credits. There are 12 entries

Date	General Journal	Debit	Credit
March 03

The list for journal entries are:

No journal entry required

Accounts payable

Accounts receivable

Accumulated depreciation

Cash

Cash dividends payable

Common stock

Depreciation expense

Equipment

Gain on investments

Income tax expense

Income taxes payable

Inventory

Investment in equity securities

Land

Paid-in capital - excess of par, common

Paid-in capital - share repurchase

Property dividends payable

Retained earnings

Salaries expense

Service revenue

Supplies

Supplies expense

Treasury stock

Utilities expense

Utilities payable