Question

On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts.

Common stock, $1 par, 244,000 shares issued	244,000
Paid-in capital - excess of par, common	488,000
Paid-in capital - excess of par, preferred	180,000
Preferred stock, $100 par, 18,000 shares outstanding	1,800,000
Retained earnings	3,600,000
Treasury stock, at cost, 4,400 shares	22,000

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 $11.6 per share, fair value $9.80 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 4% 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. (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 $11.60 per share, market value $9.80 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 4% 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.

Answer 1

Journal Entry
Date	Account Tittle	Amount Dr	Amount Cr
Jan-15	Retained Earning Dr (100000 Shares X $9.80)	9,80,000
	Loss on investment Dr (100000 Shares x $1.80)	1,80,000
	To Dividend payable		9,80,000
	To Share in Slowdown Company		1,80,000
	To Record Issue of Property Dividend
Feb	Dividend Payable Dr	9,80,000
	To Share in Slowdown Company		9,80,000
17	To Record Distribution of Dividend
Apr-10	Retained Earning Dr	19,52,000
	To stock dividend distributable (244000*2*$1)		4,88,000
	To Paid in Capital excess of par ($244000*2*$3)		14,64,000
	Record Record Decleration of Stock dividend
April	To stock dividend distributable Dr	4,88,000
	To Common Stock Cr		4,88,000
10	To Record Issuance of Stock dividend
Juy 18	Retained Earning Dr (244000+488000)*4%*$5	1,46,400
	To stock dividend distributable (244000+488000)*4%*$1		29,280
	To Paid in Capital excess of par		1,17,120
	TO Record Decleartion of Stocck Dividend
Dec-01	Retained Earning Dr	3,80,640
	To Dividend Payable (244000+488000+29280)*0.50		3,80,640
	To Record Decleartion of Cash Dividend
Dec	Dividend Payable Dr	3,80,640
	To Common Stock Cr		3,80,640
20	To Record Payment of dividend

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