On January 1, 2016, Gerlach Inc had the following account balances in its shareholders' equity accounts Common stock, $1 par, 259,000 shares issued 259,000 Paid in capital excess of par, common 518,000 Paid in capital excess of par, preferred 145,000 Preferred stock, $100 par, 14,500 shares outstanding 1,450,000 Retained earnings 2,900,000 Treasury stock, at cost, 5,900 shares 29,500 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 $10 9 per share, market value $9 45 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 )

Question

On January 1, 2016, Gerlach Inc  had the following account balances in its shareholders' equity accounts  Common stock, $1 par, 259,000 shares issued 259,000 Paid in capital   excess of par, common 518,000 Paid in capital   excess of par, preferred 145,000 Preferred stock, $100 par, 14,500 shares outstanding 1,450,000 Retained earnings 2,900,000 Treasury stock, at cost, 5,900 shares 29,500 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 $10 9 per share, market value $9 45 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 )

Accepted Answer

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January 15:	Declared a property dividend of 100,000 shares of Slowdown Company (book value $10.9 per share, market value $9.45 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.

Question

On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 259,000 shares issued 259,000 Paid-in

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Common stock, $1 par, 259,000 shares issued	259,000
Paid-in capital - excess of par, common	518,000
Paid-in capital - excess of par, preferred	145,000
Preferred stock, $100 par, 14,500 shares outstanding	1,450,000
Retained earnings	2,900,000
Treasury stock, at cost, 5,900 shares	29,500