The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Paid-in capital: Preferred stock, 9.00, 86,000 shares at $1 par $ 86,000 Common stock, 363,600 shares at $1 par 363,600 Paid-in capital-excess of par, preferred 1,485,000 Paid-in capital excess of par, common 2,535,000 Retained earnings 8,645,000 Treasury stock, at cost; 3,600 Cormon shares (43,200) Total shareholders' equity $13,071,400 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 230,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $674,000). The investment shares had a fair value of $3 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 c. On July 5, a 2% common stock dividend was declared and distributed. The market value of the common stock was $12 per share. d. On December 1, the board of directors declared the 9.0% cash dividend on the 86,000 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 $0,40 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 $760,000 Journal entry worksheet 12 (5) 12 Record any necessary adjustments to the Equity securities account as a result of the property dividend declaration, Note Date General Doura Debit Credit Marchas Recondi conly Char entry View general journal 2 3 65 12 Record the declaration of the property dividend. Nobel Enter des before cred Date General Dournal Debit Credit March 03 Record entry Clear entry View general Journal Journal entry worksheet Record the distribution of the property dividend, Note: Enter debit before.co Date General ournal Debit Credit March 31 Record entry Clear entry View general Journal Journal entry worksheet BE Record the declaration and distribution of the stock split effected in the form of a stock dividend. Note: Enter debits before credits. Date General Journal Debit Credit May 03 Record entry Clear entry View general journal Journal entry worksheet . Record the declaration and distribution of the stock dividend. Note: Enter debits before credits Date General Journal Debit Credit July 05 Record entry Clear entry View general journal Journal entry worksheet Record entry for cash dividend on preferred stock on date of declaration Note Enter cabits before credits General Journal Debit Credit Date December 01 Record entry Clear entry View general journal Journal entry worksheet Record the entry on the date of record Note! Unter debits before credits Date General Journal Debit Credit December 20 Record entry Clearany View general Journal Journal entry worksheet Record the declaration of cash dividends to common shareholders. Note: Enter debits before credits General Journal Debit Credit Date December 01 Record entry Clear entry View general Journal Journal entry worksheet
