Question
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 240,000 shares issued 240,000 Paid-in
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 240,000 shares issued 240,000 Paid-in capital - excess of par, common 480,000 Paid-in capital - excess of par, preferred 200,000 Preferred stock, $100 par, 20,000 shares outstanding 2,000,000 Retained earnings 4,000,000 Treasury stock, at cost, 4,000 shares 20,000 During 2018, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $12.0 per share, fair value $10.00 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 Fair 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; fair 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.
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