Exercise $18-23($Algo$)$ Transactions affecting retained earnings $[$L$018-6,18-7,18-8]$

The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December $31,2023$:

Paid$-$in capital:

Preferred stock, $7\mathrm{.}5\%,92,000$ shares at $$1$ par $$92,000$

Common stock, $424,200$ shares at $$1$ par $424,200$

Paid$-$in capital$-$excess of par, preferred $1,535,000$

Paid$-$in capital$-$excess of par, common $2,585,000$

Retained earnings

Hint

Treasury stock, at cost; $4,200$ common shares

Total shareholders $"$ equity

$9,145,000$

rin

Print

During $2024,$ several events and transactions affected the retained earnings of Consolidated Paper.

Required:

Prepare the appropriate entries for these events:

a$.$ On March $3,$ the board of directors declared a property dividend of $260,000$ shares of Leasco International common stock

that Consolidated Paper had purchased in January as an investment $($book value: $$498,000).$ 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 a $25\%$ stock

dividend. The market value of the $$1$ par common stock was $$11$ per share.

c$.$ On July $5,$ a $1\%$ common stock dividend was declared and distributed. The market value of the common stock was $$11$ per

share.

d$.$ On December $1,$ the board of directors declared the $7\mathrm{.}5\%$ cash dividend on the $92,000$ 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\mathrm{.}60$ per share on its common shares, payable on

December $28$ to shareholders of record December $20.$

Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December $31,2024.$ Net

income for the year was $$820,000.$ Prepare the appropriate entries for these events.

a$.$ On March $3,$ the board of directors declared a property dividend of $260,000$ shares of Leasco International common stock that

Consolidated Paper had purchased in January as an investment $($book value: $$498,000).$ The investment shares had a fair value of $$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 a $25\%$ stock dividend. The

market value of the $$1$ par common stock was $$11$ per share.

c$.$ On July $5,$ a $1\%$ common stock dividend was declared and distributed. The market value of the common stock was $$11$ per share.

d$.$ On December $1,$ the board of directors declared the $7\mathrm{.}5\%$ cash dividend on the $92,000$ 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\mathrm{.}60$ per share on its common shares, payable on December $28$ to

shareholders of record December $20.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Record the declaration and distribution of the stock dividend.

Record the payment of cash dividends to common shareholders.

Note: Enter debits before credits.

Note: Enter debits before credits.Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Incorporated at December $31,2024.$ Net

income for the year was $$820,000.$

Note: Negative amounts should be indicated by a minus sign.

CONSOLIDATED PAPER, INCORPORATED

$[$Shareholders$\text{'}$ Equity section$]$

December $31,2024$

Paid$-$in capital: