er 18 Help The balance sheet of Consolidated Paper, Inc, Included the following

Question

er 18 Help The balance sheet of Consolidated Paper, Inc, Included the following shareholders' equity accounts at December 31, 2017 2 preferred stock, 7.5%, 92,000 shares at $1 par Common stock, 424,200 shares at $1 S 92,000 424,200 1,535,000 2, 585,000 Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common int 9,145,000 Retained earnings Treasury stock, at cost: 4,200 c (46,200) Total shareholders' equity $13,735, 000 During 2018, 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 260.000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $498,000). The investment shares had a fair value of a. K Prev 12 of 15 Next>

Explanation / Answer

1. Journal entries

2.

1. On the date of declaration of proerty dividend     a. To record the fair value of the inventment Date Account Title Debit Credit Mar.3, 2018 Investment 22000 Gain on revaluation of bonds 22000     b. To record the declaration of property dividend Date Account Title Debit Credit Mar.3, 2018 Retained Earnings 520000 Property dividend distributable 520000 2. To record the distribution of property dividend Date Account Title Debit Credit Mar.31, 2018 Property dividend distributable 520000 Investment 520000 3. Delcaration of stock dividend of 25% Date Account Title Debit Credit May.3, 2018 Retained Earnings 1155000 Stock dividend distributable * 1155000 4. Distribution of 25% stock dividend Date Account Title Debit Credit May.3, 2018 Stock dividend distributable 1155000 Common Stock 105000 Paid-in-capital in excess of par, common stock 1050000 Common shares outstanding (424,200 - 4,200) 420000 Stock dividend 25% Number of stock dividend shares 105000 Market value of share 11 Stock dividend value * 1155000 5. To record declaration of 1% common stock dividend Date Account Title Debit Credit July.5, 2018 Retained Earnings 57750 Stock dividend distributable ** 57750 Common shares outstanding 525000 Stock dividend 1% Number of common stock shares 5250 Market value of share 11 Stock dividend value * 57750 6. distrubition of 1% stock dividend Date Account Title Debit Credit May.3, 2018 Stock dividend distributable 57750 Common Stock 5250 Paid-in-capital in excess of par, common stock 52500 7. Declaration of 7.5% of preferred dividend on 92,000 preferred shares Date Account Title Debit Credit July.5, 2018 Retained Earnings 6900 PreferredDividend Distributable 6900 8. Declaration of cash dividend of $0.60 per share on common stock shares. Date Account Title Debit Credit July.5, 2018 Retained Earnings 318150 Common stock Dividend Distributable 318150 9. Payment of preferred and common stock cash dividend Date Account Title Debit Credit July.5, 2018 Prefered Dividend Distributable 6900 Common stock Dividend Distributable 318150 Cash 325050

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