Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Pald-in Capital: Preferred stock, 8.8%, 87,000 shares at

image text in transcribed
The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Pald-in Capital: Preferred stock, 8.8%, 87,000 shares at 51 par Common stock, 373,700 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, como Retained earnings Treasury stock, at cost; 3,700 common shares Total shareholders' equity $ 87,080 373.700 1,495.000 2,545,000 8,745,000 (37,000) $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. a 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. 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 $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. d. 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, e 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 of hoy reared for a transaciones colournal entry routed in the est accountfield Veraction is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Issues In Social Science

Authors: Simon Grima, Ercan Özen, Hakan Boz

1st Edition

1800439318, 9781800439313

More Books

Students also viewed these Accounting questions

Question

8. Explain how to price managerial and professional jobs.pg 87

Answered: 1 week ago