On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts.

Common stock, $1 par, 244,000 shares issued	244,000
Paid-in capital - excess of par, common	488,000
Paid-in capital - excess of par, preferred	180,000
Preferred stock, $100 par, 18,000 shares outstanding	1,800,000
Retained earnings	3,600,000
Treasury stock, at cost, 4,400 shares	22,000

During 2018, Gerlach Inc. had several transactions relating to common stock.

January		15:		Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.6 per share, fair value $9.80 per share).
February		17:		Distributed the property dividend.
April		10:		A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The Fair value of the stock was $4 on this date. Hint: Debit Retained earnings.
July		18:		Declared and distributed a 4% stock dividend on outstanding common stock; fair value per share, $5.
December		1:		Declared a 50 cents per share cash dividend on the outstanding common shares.
December		20:		Paid the cash dividend.

Required:
Record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.60 per share, market value $9.80 per share).

2. Record the declaration of property dividend.

3. Distributed the property dividend.

4. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $4 on this date.

5. Declared and distributed a 4% stock dividend on outstanding common stock; market value per share, $5

6. Declared a 50 cents per share cash dividend on the outstanding common shares

7. Paid the cash dividend.

Answer rating: 100% (QA)

Declared a Property Dividend Declared a property dividend of 100000 shares of Slowdown Company Book ... View the full answer