Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $112,000 672,000 910,000

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Chapter1: Financial Statements And Business Decisions
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Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At
December 31, 2020, the corporation's accounts included:
Common stock, 112 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that
Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously
for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property
dividend was payable to shareholders of record March 13, to be distributed April 5.
c. On July 12, 2022, the corporation declared and distributed a 4 % common stock dividend (when the market value of the common
stock was $19 per share). Cash was paid in lieu of fractional shares representing 480,000 equivalent whole shares.
d. On November 1, 2022, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
e. On January 15, 2023, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock
dividend when the market value of the common stock was $20 per share.
f. On November 1, 2023, the board of directors declared a cash dividend of $0.55 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
Required:
1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions.
2. Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s). Net income was
$390 million, $455 million, and $515 million for 2021, 2022, and 2023, respectively.
Complete this question by entering your answers in the tabs below.
Required 1
Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Required 2
View transaction list
Journal entry worksheet
<
1 2 3 4 5 6
Record declaration of cash dividend.
($ in
thousands)
$112,000
672,000
910,000
Note: Enter debits before credits.
Date
November 01, 2021
General Journal
7
8
Debit
………….
15
Credit
Transcribed Image Text:Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c. On July 12, 2022, the corporation declared and distributed a 4 % common stock dividend (when the market value of the common stock was $19 per share). Cash was paid in lieu of fractional shares representing 480,000 equivalent whole shares. d. On November 1, 2022, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. e. On January 15, 2023, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $20 per share. f. On November 1, 2023, the board of directors declared a cash dividend of $0.55 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. 2. Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s). Net income was $390 million, $455 million, and $515 million for 2021, 2022, and 2023, respectively. Complete this question by entering your answers in the tabs below. Required 1 Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Required 2 View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record declaration of cash dividend. ($ in thousands) $112,000 672,000 910,000 Note: Enter debits before credits. Date November 01, 2021 General Journal 7 8 Debit …………. 15 Credit
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