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, 111 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 111,000 666,000 900,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.50 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 $2.6 million, but were purchased two years previously for $2.3 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 $18 per share). Cash was paid in lieu of fractional shares representing 660,000 equivalent whole shares. d. On November 1, 2025, the board of directors declared a cash dividend of $0.50 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 $19 per share. f. On November 1, 2026, the board of directors declared a cash dividend of $0.35 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. 2. Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s). Net income was $385 million, $450 million, and $510 million for 2024, 2025, and 2026, respectively.
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, 111 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 111,000 666,000 900,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.50 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 $2.6 million, but were purchased two years previously for $2.3 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 $18 per share). Cash was paid in lieu of fractional shares representing 660,000 equivalent whole shares. d. On November 1, 2025, the board of directors declared a cash dividend of $0.50 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 $19 per share. f. On November 1, 2026, the board of directors declared a cash dividend of $0.35 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions. 2. Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s). Net income was $385 million, $450 million, and $510 million for 2024, 2025, and 2026, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vikram
Transcribed Image Text: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, 111 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
($ in
thousands)
$ 111,000
666,000
900,000
a. November 1, 2024, the board of directors declared a cash dividend of $0.50 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 $2.6 million, but were purchased two years previously
for $2.3 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 $18 per share). Cash was paid in lieu of fractional shares representing 660,000 equivalent whole shares.
d. On November 1, 2025, the board of directors declared a cash dividend of $0.50 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 $19 per share.
f. On November 1, 2026, the board of directors declared a cash dividend of $0.35 per share on its common shares, payable to
shareholders of record November 15, to be paid December 1.
Required:
1. Prepare the journal entries that Branch-Rickie recorded during the three-year period for these transactions.
2. Prepare comparative statements of shareholders' equity for Branch-Rickie for the three-year period ($ in 000s). Net income was
$385 million, $450 million, and $510 million for 2024, 2025, and 2026, respectively.
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