On January 31, 2016, Leia transferred to its stockholders some of its equity investments. As of 01-31-16, the investments had a carrying value of $700,000 and a fair market value of $1,200,000. On March 1, Leia distributed the equity securities to stockholders of record as of February 20, 2016. Prepare the entries Leia should make on

January 31, 2016.

January 31, 2016.

March 1, 2016.

Assume that as of 12-31-15, Leia’s retained earnings account balance was $10,000,000. Also assume that during the three months ended 03-31-16, Leia recorded sales revenues of $5,000,000 and expenses of $3,900,000. Based on these two assumptions AND the impact of the entries you made for the property dividend, what was Leia’s retained earnings balance as of 03-31?

Answer rating: 100% (QA)

Date Accounts Debit Credit Jan 31 2016 Equity investment 1200000 7... View the full answer