Can you help me with this problem with step by step explanation, please? Thank you :) On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 247,000 shares issued $ 247,000 Paid-in capital—excess of par, common 494,000 Paid-in capital—excess of par, preferred 165,000 Preferred stock, $100 par, 16,500 shares outstanding 1,650,000 Retained earnings 3,300,000 Treasury stock, at cost, 4,700 shares 23,500 During 2021, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.3 per share, fair value $9.65 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. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. 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 and events in journal entry format.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Related questions

Concept explainers

Question

Can you help me with this problem with step by step explanation, please? Thank you :)

On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity accounts.


Common stock, $1 par, 247,000 shares issued	$	247,000
Paid-in capital—excess of par, common		494,000
Paid-in capital—excess of par, preferred		165,000
Preferred stock, $100 par, 16,500 shares outstanding		1,650,000
Retained earnings		3,300,000
Treasury stock, at cost, 4,700 shares		23,500

During 2021, Gerlach Inc. had several transactions relating to common stock.

January	15:	Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.3 per share, fair value $9.65 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. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date.
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 and events in journal entry format.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.