The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December 31, 2023: Paid-in capital: Preferred stock, 8.0%, 97,000 shares at $1 par Common stock, 474,700 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings Treasury stock, at cost; 4,700 common shares Total shareholders' equity $ 97,000 474,700 1,585,000 2,635,000 9,645,000 (47,000) $ 14,389,700 During 2024, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events: a. On March 3, the board of directors declared a property dividend of 285,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $828,000). The investment shares had a fair value of $3 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 a 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 97,000 preferred shares, payable on December 28 to shareholders of record December 20. e. On December 1, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on December 28 to shareholders of record December 20. 2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net income for the year was $870,000.
The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December 31, 2023: Paid-in capital: Preferred stock, 8.0%, 97,000 shares at $1 par Common stock, 474,700 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings Treasury stock, at cost; 4,700 common shares Total shareholders' equity $ 97,000 474,700 1,585,000 2,635,000 9,645,000 (47,000) $ 14,389,700 During 2024, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events: a. On March 3, the board of directors declared a property dividend of 285,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $828,000). The investment shares had a fair value of $3 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 a 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 97,000 preferred shares, payable on December 28 to shareholders of record December 20. e. On December 1, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on December 28 to shareholders of record December 20. 2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net income for the year was $870,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December 31, 2023:
Paid-in capital:
Preferred stock, 8.0%, 97,000 shares at $1 par
Common stock, 474,700 shares at $1 par
Paid-in capital-excess of par, preferred
Paid-in capital-excess of par, common
Retained earnings
Treasury stock, at cost; 4,700 common shares
Total shareholders' equity
$ 97,000
474,700
1,585,000
2,635,000
9,645,000
(47,000)
$ 14,389,700
During 2024, several events and transactions affected the retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate entries for these events:
a. On March 3, the board of directors declared a property dividend of 285,000 shares of Leasco International common stock
that Consolidated Paper had purchased in January as an investment (book value: $828,000). The investment shares had a
fair value of $3 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 a 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 97,000 preferred shares, payable on
December 28 to shareholders of record December 20.
e. On December 1, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on
December 28 to shareholders of record December 20.
2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net
income for the year was $870,000.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net
income for the year was $870,000.
Note: Negative amounts should be indicated by a minus sign.
CONSOLIDATED PAPER, INCORPORATED
Paid-in capital:
[Shareholders' Equity section]
December 31, 2024
Preferred stock
97,000
Common stock
Paid-in capital - excess of par, preferred
1,585,000
Paid-in capital - excess of par, common
Retained earnings
1
Treasury stock
Total shareholders' equity
(47,000)
$ 1,635,003
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb397e14d-b287-4abb-9ffb-928d2f065b30%2F34475451-4e7d-4ff7-9d7a-d50147a0d816%2Fg6879oa_processed.png&w=3840&q=75)
Transcribed Image Text:The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December 31, 2023:
Paid-in capital:
Preferred stock, 8.0%, 97,000 shares at $1 par
Common stock, 474,700 shares at $1 par
Paid-in capital-excess of par, preferred
Paid-in capital-excess of par, common
Retained earnings
Treasury stock, at cost; 4,700 common shares
Total shareholders' equity
$ 97,000
474,700
1,585,000
2,635,000
9,645,000
(47,000)
$ 14,389,700
During 2024, several events and transactions affected the retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate entries for these events:
a. On March 3, the board of directors declared a property dividend of 285,000 shares of Leasco International common stock
that Consolidated Paper had purchased in January as an investment (book value: $828,000). The investment shares had a
fair value of $3 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 a 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 97,000 preferred shares, payable on
December 28 to shareholders of record December 20.
e. On December 1, the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on
December 28 to shareholders of record December 20.
2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net
income for the year was $870,000.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December 31, 2024. Net
income for the year was $870,000.
Note: Negative amounts should be indicated by a minus sign.
CONSOLIDATED PAPER, INCORPORATED
Paid-in capital:
[Shareholders' Equity section]
December 31, 2024
Preferred stock
97,000
Common stock
Paid-in capital - excess of par, preferred
1,585,000
Paid-in capital - excess of par, common
Retained earnings
1
Treasury stock
Total shareholders' equity
(47,000)
$ 1,635,003
< Required 1
Required 2 >
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