Problem 1Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporationduring the period 2023 to 2025. At December 31, 2022, the corporation's accounts included (inthousands):Ordinary share capital, P1 parShare premium105,000630,000Retained earnings970,000a. On November 1, 2023, the board of directors declared a cash dividend of PO 80 per share on itsordinary shares, payable to shareholders of record on November 15, to be paid on December 1.b. On March 1, 2024, the board of directors declared a property dividend consisting of corporate bondsof Warner Corporation that Branch-Ricki was holding as an investment. The bonds had a fair value ofP1.6 million, but were purchased two years previously for P1.3 million. Because they were intendedto be held to maturity, the bonds had not been previously written up. The property dividend waspayable to shareholders of record on March 13, to be distributed on April 5. The fair value of theinvestment on April 5 is P1.5 million.c.On July 12, 2024, the corporation declared and distributed a 1-for-20 bonus issue (when the marketvalue of the ordinary shares was P21 per share).d. On November 1, 2024, the board of directors declared a cash dividend of P0.80 per share on itsordinary shares, payable to shareholders of record on November 15, to be paid on December 1.e. On January 15, 2025, the board of directors declared and distributed a 1-for-2 bonus issue (when themarket value of the ordinary shares was P22 per share).f.On November 1, 2025, the board of directors declared a cash dividend of P0.65 per share on itsordinary shares, payable to shareholders of record on November 15, to be paid on December 1.1.Prepare the journal entries that Branch-Rickie recorded during the three-year period for thesetransactions.2. Prepare comparative statements of changes in equity for Branch-Rickie for the three-year period (inthousands). Net income was P330 million, P395 million and P455 million for 2023, 2024 and 2025,respectively,

Name: Problem 1Listed below are the transactions that affected the sharehol
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Description: Problem 1Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporationduring the period 2023 to 2025. At December 31, 2022, the corporation's accounts included (inthousands):Ordinary share capital, P1 parShare

Business

Accounting

1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. 2. Prepare comparative statements of changes in equity for Branch-Rickie for the three-year period (in thousands). Net income was P330 million, P395 million and P455 million for 2023, 2024 and 2025, respectively,

1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. 2. Prepare comparative statements of changes in equity for Branch-Rickie for the three-year period (in thousands). Net income was P330 million, P395 million and P455 million for 2023, 2024 and 2025, respectively,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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