Question: On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts.
| Common stock, $1 par, 248,000 shares issued |
248,000 |
| Paid-in capital - excess of par, common |
496,000 |
| Paid-in capital - excess of par, preferred |
160,000 |
| Preferred stock, $100 par, 16,000 shares outstanding |
1,600,000 |
| Retained earnings |
3,200,000 |
| Treasury stock, at cost, 4,800 shares |
24,000 |
During 2016, Gerlach Inc. had several transactions relating to common stock.
| January 15: |
Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.2 per share, market value $9.60 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 market value of the stock was $4 on this date. Hint: Debit Retained earnings.
|
| July 18: |
Declared and distributed a 3% stock dividend on outstanding common stock; market 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 and events in journal entry format. (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 $11.20 per share, market value $9.60 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 3% 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.