Listed below are the transactions that affected the shareholders’ equity of Bran
ID: 2546384 • Letter: L
Question
Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2018–2020. At December 31, 2017, the corporation’s accounts included:
November 1, 2018, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
On March 1, 2019, 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 $3.6 million, but were purchased two years previously for $3.2 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.
On July 12, 2019, the corporation declared and distributed a 4% common stock dividend (when the market value of the common stock was $19 per share). Cash was paid in lieu of fractional shares representing 800,000 equivalent whole shares.
On November 1, 2019, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
On January 15, 2020, 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 $20 per share.
On November 1, 2020, the board of directors declared a cash dividend of $0.65 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
($ in 000s) Common stock, 120 million shares at $1 par $ 120,000 Paid-in capital—excess of par 720,000 Retained earnings 990,000 BRANCH-RICKIE CORPORATION Statement of Shareholders' Equity For the Years Ended Dec. 31, 2018, 2019, and 2020 Common Total Shareholders Equity Additional Retained StockPaid-in Capital Earnings Jan. 1, 2018 Net income Cash dividends Dec. 31, 2018 Property dividends Common stock dividend Net income Cash dividends Dec. 31, 2019 3-for-2 split effected in the form of a stock 0 0 0 0 0 0 dividend Net income Cash dividends Dec. 31, 2020 0Explanation / Answer
(in '000)
(120000*.80)=
-96,000
2019 Common Stock dividend
2020 3 for 2 split effected in the form of stock dividend
Additional shares to be issued =124000/2=62,000
BRANCH-RICKIE CORPORATION STATEMENT OF SHAREHOLDERS' EQUITY FOR THE YEAR ENDED DEC. 31, 2018,2019,20120Related Questions
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