Question

Teal Inc. owns shares of Flint Corporation stock. At December 31, 2020, the securities were carried in Teal's accounting records at their cost of $941,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,000,000, Teal declared a property dividend whereby the Flint securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021. Prepare all journal entries necessary on those three dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Sep. 21 (To record gain or loss) (To record property dividend) Oct. 8 Oct. 234 Property Dividends Payable 1000000 Equity Investments 1000000 e Textbook and Media

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Sep 21	Equity Investments	$59,000
	Unrealized Holding Gain or Loss - Income		$59,000
	($1,000,000 - $941,000)
	Retained Earnings	$1,000,000
	Property Dividends Payable		$1,000,000
Oct 8	No Entry
	No Entry