The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2015: Paid-in capital: Preferred stock, 8.0%, 80,000 shares at $1 par Common stock, 303,000 shares at $1 par Paid-in capital -excess of par, preferred Paid-in capital-excess of par, common Retained earnings Treasury stock, at cost; 3,000 common shares 80,000 303,000 1,425,000 2,475,000 8,045,000 (30,000) Total shareholders' equity $12,298,000
During 2016, several events and transactions affected the retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate entries for these events. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.)
a. On March 3 the board of directors declared a property dividend of 200,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $390,000). The investment shares had a fair value of $2 per share and were distributed March 31 to shareholders of record March 15.
b. On May 3 a 5-for-4 stock split was declared and distributed. The stock split was effected in the form of 25% stock dividend. The market value of the $1 par common stock was $10 per share
c. On July 5 a 1% common stock dividend was declared and distributed. The market value of the common stock was $10 per share.
d. On December 1 the board of directors declared the 8.0% cash dividend on the 80,000 preferred shares, payable on December 28 to shareholderss of record December 20
e. On December 1 the board of directors declared a cash dividend of $0.40 per share on its common shares, payable on December 28 to shareholders of record December 20.