Student Name Instructor Class McGraw Hill Irwin Problem 18 05 Requirement 1 BRANCH RICKIE CORPORATION General Journal Account 2011 November 1 declaration date Retained earnings Cash dividends payable November 15 date of record no entry December 1 payment date Cash dividends payable Cash 2012 March 1 declaration date Investment in Warner bonds Gain on appreciation of investment Retained earnings Property dividends payable March 13 date of record no entry April 5 payment date Property dividends payable Investment in Warner bonds July 12 Retained earnings Common stock Paid in capital excess of par Cash November 1 declaration date Retained earnings Cash dividends payable November 15 date of record no entry December 1 payment date Cash dividends payable Cash 2013 January 15 Paid in capital excess of par Common stock November 1 declaration date Retained earnings Cash dividends payable Debit Credit 84 000 000 84 000 000 Correct 84 000 000 84 000 000 Correct 300 000 1 600 000 300 000 Correct 1 600 000 Correct 1 600 000 1 600 000 Correct 110 250 000 Correct 5 000 000 100 000 000 5 250 000 88 000 000 88 000 000 Correct 88 000 000 88 000 000 Correct 55 000 000 107 250 000 55 000 000 Correct 107 250 000 Correct Student Name Instructor Class McGraw Hill Irwin Problem 18 05 November 15 date of record no entry December 1 payment date Cash dividends payable Cash 107 250 000 107 250 000 Correct Student Name Instructor Class McGraw Hill Irwin Problem 18 05 Requirement 2 BRANCH RICKIE CORPORATION Statement of Shareholders Equity For the Years Ended December 31 2011 2012 and 2013 in 000s Jan 1 2011 Net income Cash dividends Dec 31 2011 Property dividends Common stock dividend Net income Cash dividends Dec 31 2012 3 for 2 split effected in the form of a stock dividend Net income Cash dividends Dec 31 2013 Common Stock 105 000 Additional Paid in Capital 630 000 Total Shareholders Retained Equity Earnings 1 705 000 970 000 330 000 330 000 84 000 84 000 1 951 000 1 216 000 105 000 630 000 Correct Correct Correct Correct 5 000 110 000 1 600 1 600 100 000 110 250 5 250 395 000 395 000 88 000 88 000 2 251 150 1 411 150 730 000 Correct Correct Correct Correct 55 000 55 000 165 000 675 000 Correct Correct Correct Correct 455 000 455 000 107 250 107 250 2 598 900 1 758 900 Given Data P18 05 BRANCH RICKIE CORPORATION Common stock 105 million shares at 1 par Paid in capital excess of par Retained earnings 105 000 000 630 000 000 970 000 000 Cash dividend declared on common shares 11 1 2011 Bond fair value Bond purchase price Common stock dividend declared and distributed Market value of common stock 7 12 2012 Equivalent whole shares Cash dividend declared on common shares 11 1 2012 Stock split form Market value of common stock 1 15 2013 Cash dividend declared on common shares 11 1 2013 Net income for year 2011 Net income for year 2012 Net income for year 2013 0 80 per share 1 600 000 1 300 000 5 21 00 per share 250 000 0 80 per share 50 22 00 0 65 per share 330 000 000 395 000 000 455 000 000