The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2010:

Question:

The of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2010:

During 2011, 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 of 240,000 shares of Leasco International that Consolidated Paper had purchased in January as an investment (book value: $700,000). 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 The market value of the $1 par was $11 per share.
c. On July 5 a 2% was declared and distributed. The market value of the was $11 per share.
d. On December 1 the board of directors declared the 8.8% cash on the 90,000 preferred shares, payable on December 28 to shareholders of record December 20.
e. On December 1 the board of directors declared a cash of $.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 for Consolidated Paper, Inc., for the year ended at December 31, 2011. Net income for the year was $810,000.

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