SP18-05Given P18-05Student Name: InstructorClass: McGraw-Hill/IrwinProblem 18-05Requirement 1:BRANCH-RICKIE CORPORATIONGeneral JournalAccount Debit Credit2011November 1 - declaration dateRetained earnings 84,000,000 Cash dividends payable 84,000,000 «- Correct!November 15 - date of record no entryDecember 1 - payment dateCash dividends payable 84,000,000 Cash 84,000,000 «- Correct!2012March 1 - declaration dateInvestment in Warner bonds 300,000 Gain on appreciation of investment 300,000 «- Correct!Retained earnings 1,600,000 Property dividends payable 1,600,000 «- Correct!March 13 - date of record no entryApril 5 - payment dateProperty dividends payable 1,600,000 Investment in Warner bonds 1,600,000 «- Correct!July 12Retained earnings 110,250,000 «- Correct! Common stock 5,000,000 Paid-in capital - excess of par 100,000,000 Cash 5,250,000 November 1 - declaration dateRetained earnings 88,000,000 Cash dividends payable 88,000,000 «- Correct!November 15 - date of record no entryDecember 1 - payment dateCash dividends payable 88,000,000 Cash 88,000,000 «- Correct!2013January 15Paid-in capital - excess of par 55,000,000 Common stock 55,000,000 «- Correct!November 1 - declaration dateRetained earnings 107,250,000 Cash dividends payable 107,250,000 «- Correct!Student Name: InstructorClass: McGraw-Hill/IrwinProblem 18-05November 15 - date of record no entryDecember 1 - payment dateCash dividends payable 107,250,000 Cash 107,250,000 «- Correct!Student Name: InstructorClass: McGraw-Hill/IrwinProblem 18-05Requirement 2:BRANCH-RICKIE CORPORATIONStatement of Shareholders' EquityFor the Years Ended December 31, 2011, 2012 and 2013($ in 000s)Additional TotalCommon Paid-in RetainedShareholders'Stock Capital Earnings EquityJan. 1, 2011 105,000 630,000 970,000 1,705,000 Net income 330,000 330,000 Cash dividends (84,000) (84,000)Dec. 31, 2011 105,000 630,000 1,216,000 1,951,000 Correct! Correct! Correct! Correct! Property dividends (1,600) (1,600) Common stock dividend 5,000 100,000 (110,250) (5,250) Net income 395,000 395,000 Cash dividends (88,000) (88,000)Dec. 31, 2012 110,000 730,000 1,411,150 2,251,150 Correct! Correct! Correct! Correct! 3 for 2 split effected in the form of a stock dividend 55,000 (55,000) Net income 455,000 455,000 Cash dividends (107,250) (107,250)Dec. 31, 2013 165,000 675,000 1,758,900 2,598,900 Correct! Correct! Correct! Correct!Given Data P18-05:BRANCH-RICKIE CORPORATIONCommon stock, 105 million shares at $1 par $ 105,000,000 Paid-in-capital--excess of par 630,000,000 Retained earnings 970,000,000 Cash dividend declared on common shares, 11/1/2011 $ 0.80 per shareBond fair value $ 1,600,000 Bond purchase price $ 1,300,000 % Common stock dividend declared and distributed 5%Market value of common stock, 7/12/2012 $ 21.00 per shareEquivalent whole shares $ 250,000 Cash dividend declared on common shares, 11/1/2012 $ 0.80 per shareStock split form 50%Market value of common stock, 1/15/2013 $ 22.00 Cash dividend declared on common shares, 11/1/2013 $ 0.65 per shareNet income for year 2011 $ 330,000,000 Net income for year 2012 $ 395,000,000 Net income for year 2013 $