**Problem 18-5 (Algo) Shareholders’ Equity Transactions; Statement of Shareholders’ Equity; Financial Statement Effects [LO18-6, 18-7, 18-8]**Listed below are transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2024–2026. As of December 31, 2023, the corporation's accounts included:- **Common stock, 112 million shares at $1 par**: $112,000 (in thousands)- **Paid-in capital—excess of par**: $672,000- **Retained earnings**: $910,000**Transactions:**a. *November 1, 2024*: A cash dividend of $0.70 per share was declared on common shares. The dividend is payable to shareholders of record on November 15, to be paid December 1.b. *March 1, 2025*: The board declared a property dividend of corporate bonds worth $2.8 million (held as an investment having a previous purchase price of $2.4 million). Payable to shareholders of record on March 13, to be distributed on April 5.c. *July 12, 2025*: A 4% common stock dividend was declared when the market value was $19 per share. Cash was paid for fractional shares representing 480,000 equivalent whole shares.d. *November 1, 2025*: A cash dividend of $0.70 per share was declared, payable to shareholders of record on November 15, to be paid December 1.e. *January 15, 2026*: A 3-for-2 stock split was distributed in the form of a 50% stock dividend, with a market value of $20 per share.f. *November 1, 2026*: A cash dividend of $0.55 per share was declared, payable to shareholders of record November 15, to be paid December 1.**Required:**1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions.2. Prepare comparative statements of shareholders’ equity for Branch-Rickie for the three-year period ($ in thousands). Net income was $390 million, $455 million, and $515 million for 2024, 2025, and 2026, respectively.

The stockholder's equity section is a section of a company's balance sheet that shows the company's…

Answered: Listed below are the transactions that…

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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SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $365, 700 in 2023 and $335,800 in 2022. Equity and Liabilities 2023 2022 Share capital-common (137,700 shares issued) $ 1,417,500 $ 1,417,500 Retained earnings (Note 1) 417,700 311, 300 Accrued liabilities 10,300 6,500 Notes payable (current) 82,700 65,500 Accounts payable 59,500 179,000 Total equity and liabilities $1,987,700 $ 1,979,800 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,454,000 at December 31, 2021.) (Round your answers to 1 decimal place.) 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.)
Compute the earnings per share data as it should appear on an income statement.
Rahul
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. $ 241,000 482,000 195,000 1,950,000 3,900,000 20,500 Common stock, $1 par, 241,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 19,500 shares outstanding Retained earnings Treasury stock, at cost, 4,100 shares During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 20: Declared a property dividend of 100,000 shares of Burak Company (book value $11.9 per share, fair value $9.95 per share). Shareholders' equity Distributed the property dividend. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Dolar chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. Declared and distributed a 4% stock dividend…
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts included: Common stock, 105 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 105,000 624,000 840,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2025, 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 $1.9 million, but were purchased two years previously for $1.7 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, 2025, the…
Crane Limited reported the following items in shareholders' equity on December 31, 2024: Share capital: Preferred shares, $4 cumulative dividend, 165,000 shares issued and outstanding $16,500,000 Share capital: Common shares, 767,000 issued and outstanding 38,350,000 Retained earnings 26,290,000 (a) No dividends were declared in 2022 or 2023; however, in 2024, cash dividends of $5,431,500 were declared. Calculate how much would be paid to each class of shares. Preferred Common Total Arrears 2022 $ $ $ Arrears 2023
Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the corporation had 300,000 shares of common stock outstanding and issued an additional 250,000 shares of common stock on October 1, 2018. Calculate the earnings per shares using the weighted-average number of common shares outstanding.
The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows: 2024 2023 Contributed capital: Common shares, 51,000 shares authorized; 27,600 and 25,000 shares issued and outstanding, respectively.$837,200 $735,000 Retained earnings 591,000 554,300 The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.60 per share cash dividend was declared, and the date of record was five days later. Mar. 20 2,000 common shares were repurchased and retired at $29.40 per share. Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later. July 5 A $1.60 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $35.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $1.80 per share cash dividend was declared, and the date of record was five days…
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
The following data were taken from the accounts of BestDeals Corporation at the end of 2019: Capital stock, par $10 (20,000 shares issued) $200,000 Contributed capital in excess of par 305,000 Retained earnings, balance December 31, 2018 100,000 Revenues earned during 2019 500,000 Expenses incurred during 2019 420,000 Cash dividends declared and paid (during 2019) 30,000 Treasury stock (1,000 shares at cost) 17,000 The total amount of stockholders' equity that should be reported on the balance sheet dated December 31, 2019, is A. $278,000 B. $638,000. C. $398,000
On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2021, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. July 18: Declared and…

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