The balance sheet of Consolidated Paper, Inc, included the following shareholder

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The balance sheet of Consolidated Paper, Inc, included the following shareholders' equity accounts at December 31, 2017 Paid-in capital: Common stock, 343,400 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Preferred stock, 8.5%, 84,000 shares at $1 par $ 84,000 343,400 1,465,00o 2,515,000 8,445,000 Retained earnings Treasury stock, at cost: 3,400 common shares(34,000) Total shareholders' equity $12,818,400 During 2018, 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 220,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $426,000). 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 $10 per share. C. On July 5 a 2% common stock dividend was declared and distributed. The market value of the common stogk was $10 per share. d. On December 1 the board of directors declared the 8.5% cash dividend on the 84,000 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 $0.50 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, Inc., at December 31, 2018. Net income for the year was $740,000 Complete this question by entering your answers in the tabs below

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Date Account Debit Credit working Mar 3 Investment in Leasco International 14000 (220000*2)-426000 Gain on Investment 14000 Mar 3 Retained Earning 440000 220000*2 Property Dividend Payable 440000 Mar 31 Property Dividend Payable 440000 Investment in Leasco International 440000 May 3 Paid-in capital—Excess of par, common 85000 25% (343400-3400) Common Stock 85000 Jul 5 Retained Earning 85000 8500*10 Common Stock 8500 2% (343400-3400+85000) Paid-in capital—Excess of par, common 76500 8500*(10-1) Dec 1 Retained Earning 7140 84000*8.5% Dividend Payable 7140 Dec 28 Dividend Payable 7140 Cash 7140 Dec 1 Retained Earning 216750 0.5*(340000+85000+8500) Dividend Payable 216750 Dec 28 Dividend Payable 216750 Cash 216750

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