Listed below are the transactions that affected the shareholders' equity of Branch-Rickie coporation during the period 2013-2015. At Dec 31, 2012, the corporation's accounts included:
- Common stock, 105 million shares at $1 par 105,000,000
- Paid-in capital - excess of par 630,000,000
- REtained earnings 970,000,000
a) Nov 1, 2013, the board of directors declared a cash dividend of 0.80 per share on its common shares, payable to shareholders of Record Nov 15, to be paid Dec 1.
b) On Mar 1, 2014, 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 1.6 million, but some were purchased 2 years previously for 1.3 million. Because they were intended to be held to maturity, the bonds had not been previosuly written up. The property divbidend was payable to shareholders of record March 13, to be distributed April 5.
c) On July 12, 2014, the corporation declared and distributed a 5% common stock dividend (when the market value of the common stock was $21 per share). Cash was paid in lieu of fractional shares representing 250,000 equivalent whole shares.
d) On Nov 1, 2014, the board of directors declared a cash dividend of 0.80 per share on its common shares, payable to shareholders of record Nov 15, to be paid Dec 1.
e) On Jan 15, 2015, 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 $22 per share.
f) On Nov 1, 2015, the board of directors declared a cash dividend of 0.65 per share on its common shares, payable to shareholders of record Nov 15, to be paid Dec 1.
Required:
1) Prepare the journal entries that Branch-Rickie recorded during the three year priod for these transactions.
2) Prepare comparative statements of shareholders' equity for Branch-Rickie for the three year period.
Net income was 330 million, 395 million and 455 million for 2013, 2014 and 2015 respectively.