On August 15, 2019, the accounts and information that would appear in its shareholders’ equity section of Gilman Company’s balance sheet are listed below:

1. On August 15, 2019, the board of directors declared a 5 percent stock dividend. The date of distribution was September 25, 2019, to the shareholders of record on September 1, 2019. The stock was selling for $10 per share on the date of declaration.

2. On November 30, 2019, Gilman Company repurchased and held as treasury stock 1,000 shares of its common stock at $11 per share.

3. Gilman generated $100,000 of net income in 2019.

Required:

A. Make the entries to record these equity events.

B. Prepare the shareholders’ equity section of the balance sheet at December 31, 2019.

Transcribed Image Text:

Common stock-$1 par value, 1,000,000 shares authorized, 400,000 shares issued and outstanding $ 400,000 Paid-in capital in excess of par Total contributed capital Retained earnings Total shareholders' equity 500,000 $ 900,000 606,000 $1,506,000