Skip Chapter 19 Homework - REAL Navigation eBook Print Question 13 Partially correct Mark 4.94 out of 7.69 Flag question Question text Recording Equity Journal Entries and Reporting Stockholders Equity The Gilmore Company had the following stockholders equity section as of January 1. Stockholders' equityPreferred stock, $100 par, 8% cumulative, 6,000 shares issued and outstanding$600,000Common stock, $20 par, 42,000 shares issued and outstanding840,000Paid-in capital in excess of par480,000Retained earnings1,800,000Total stockholders equity$3,720,000 There are no dividends in arrears on preferred shares. During the year, the following transactions occurred. 1. Earnings during the year total $360,000. Hint: Transfer amount from the Income Summary account. 2. The board of directors declares and distributes a cash dividend totaling $168,000 to be paid as appropriate to preferred and common shareholders. 3. To familiarize stockholders with one of the companys new products, the board declares and distributes a property dividend of one ounce of a new perfume the company produces for every share of outstanding common stock. The cost of the perfume is 60 cents per ounce, and the product has a market value of $1 per ounce. Any gain or loss on this transaction has already been recorded and is included in the earnings reported above. 4. A stock dividend of 10% is declared and distributed on common stock. The fair value of common stock is $68 per share on the date the stock dividend is declared. 5. At the end of the year, the board declares and distributes a 3-for-2 stock split of its common stock, effected in the form of a dividend. At the date of the stock split, the fair value of common stock is $75 per share.