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The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2017: Paid-in capital: Preferred stock, 8.08, 80,000 shares at

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The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2017: Paid-in capital: Preferred stock, 8.08, 80,000 shares at $1 par $ 80,000 Common stock, 303,000 shares at $1 par 303,000 Paid-in capital-excess of par, preferred 1,425,000 Paid-in capital-excess of par, common 2,475,000 Retained earnings 8,045,000 Treasury stock, at cost; 3,000 common shares (30,000) Total shareholders' equity $12,298,000 During 2018, several events and transactions affected the retained earnings of Consolidated Paper es Required: 1. Prepare the appropriate entries for these events. a. On March 3 the board of directors declared a property dividend of 200,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $390,000). 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. c. On July 5 a 1% 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 8.0% cash dividend on the 80,000 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 Paner Inn at eromhor 71 7019 Complete this ques Required 1 Required 2 Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Inc. at December 31, 2018. Net income for the year was $700,000. (Negative amounts should be indicated by a minus sign.) CONSOLIDATED PAPER, INC., [Shareholders' Equity section] December 31, 2018 Common stock Preferred stock 80,000 Pald-in capital-excess of par, common Paid-in capital excess of par, preferred 1,425,000 Retained earnings Treasury stock (30,000) Total shareholders' equity $ 1,475,000

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