Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts Included: Common stock, 117 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 117,000 702,000 960,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.90 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-Rickle was holding as an Investment. The bonds had a fair value of $3.3 million, but were purchased two years previously for $2.9 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 corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $16 per share). Cash was paid in lieu of fractional shares representing 20,000 equivalent whole shares. d. On November 1, 2025, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. e. On January 15, 2026, 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 $17 per share. f. On November 1, 2026, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 1. Prepare the journal entries that Branch-Rickle recorded during the three-year period for these transactions. 2. Prepare comparative statements of shareholders' equity for Branch-Rickle for the three-year period ($ In 000s). Net Income was $415 million, $480 million, and $540 million for 2024, 2025, and 2026, respectively. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2024-2026. At
December 31, 2023, the corporation's accounts Included:
Common stock, 117 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
($ in thousands)
$ 117,000
702,000
960,000
a. November 1, 2024, the board of directors declared a cash dividend of $0.90 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-Rickle was holding as an Investment. The bonds had a fair value of $3.3 million, but were purchased two years previously
for $2.9 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 corporation declared and distributed a 6% common stock dividend (when the market value of the common
stock was $16 per share). Cash was paid in lieu of fractional shares representing 20,000 equivalent whole shares.
d. On November 1, 2025, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
e. On January 15, 2026, 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 $17 per share.
f. On November 1, 2026, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
Required:
1. Prepare the journal entries that Branch-Rickle recorded during the three-year period for these transactions.
2. Prepare comparative statements of shareholders' equity for Branch-Rickle for the three-year period ($ In 000s). Net Income was
$415 million, $480 million, and $540 million for 2024, 2025, and 2026, respectively.
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts Included: Common stock, 117 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 117,000 702,000 960,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.90 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-Rickle was holding as an Investment. The bonds had a fair value of $3.3 million, but were purchased two years previously for $2.9 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 corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $16 per share). Cash was paid in lieu of fractional shares representing 20,000 equivalent whole shares. d. On November 1, 2025, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. e. On January 15, 2026, 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 $17 per share. f. On November 1, 2026, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 1. Prepare the journal entries that Branch-Rickle recorded during the three-year period for these transactions. 2. Prepare comparative statements of shareholders' equity for Branch-Rickle for the three-year period ($ In 000s). Net Income was $415 million, $480 million, and $540 million for 2024, 2025, and 2026, respectively. Complete this question by entering your answers in the tabs below.
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