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: ($ in 000s) Common stock, 108 million shares at $1 par $ 108,000 Paid-in capital—excess of par 648,000 Retained earnings 870,000 November 1, 2018, the board of directors declared a cash dividend of $0.90 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 $2.3 million, but were purchased two years previously for $2.0 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 8% common stock dividend (when the market value of the common stock was $15 per share). Cash was paid in lieu of fractional shares representing 640,000 equivalent whole shares. On November 1, 2019, the board of directors declared a cash dividend of $0.90 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 $16 per share. On November 1, 2020, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 2. Prepare comparative statements of shareholders’ equity for Branch-Rickie for the three-year period. Net income was $370 million, $435 million, and $495 million for 2018, 2019, and 2020, respectively. common stock additional paid in capital retained earnings total shareholder's equity 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 stock dividend net income cash dividends dec 31.2020

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: ($ in 000s) Common stock, 108 million shares at $1 par $ 108,000 Paid-in capital—excess of par 648,000 Retained earnings 870,000 November 1, 2018, the board of directors declared a cash dividend of $0.90 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 $2.3 million, but were purchased two years previously for $2.0 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 8% common stock dividend (when the market value of the common stock was $15 per share). Cash was paid in lieu of fractional shares representing 640,000 equivalent whole shares. On November 1, 2019, the board of directors declared a cash dividend of $0.90 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 $16 per share. On November 1, 2020, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. Required: 2. Prepare comparative statements of shareholders’ equity for Branch-Rickie for the three-year period. Net income was $370 million, $435 million, and $495 million for 2018, 2019, and 2020, respectively. common stock additional paid in capital retained earnings total shareholder's equity 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 stock dividend net income cash dividends dec 31.2020

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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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:

	($ in 000s)
Common stock, 108 million shares at $1 par	$	108,000
Paid-in capital—excess of par		648,000
Retained earnings		870,000

November 1, 2018, the board of directors declared a cash dividend of $0.90 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 $2.3 million, but were purchased two years previously for $2.0 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 8% common stock dividend (when the market value of the common stock was $15 per share). Cash was paid in lieu of fractional shares representing 640,000 equivalent whole shares.
On November 1, 2019, the board of directors declared a cash dividend of $0.90 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 $16 per share.
On November 1, 2020, the board of directors declared a cash dividend of $0.75 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.

Required:
2. Prepare comparative statements of shareholders’ equity for Branch-Rickie for the three-year period. Net income was $370 million, $435 million, and $495 million for 2018, 2019, and 2020, respectively.

	common stock	additional paid in capital	retained earnings	total shareholder's equity
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 stock dividend
net income
cash dividends
dec 31.2020

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