Response:
As of January 1, 2021, Gerlach Inc. had the following balances in its shareholders' equity accounts: Common stock at $1 par value, totaling 256,000 shares issued, equating to $256,000
Paid-in capital—over par, common $512,000
Paid-in capital—over par, preferred $130,000
Preferred stock with a par value of $100, 13,000 shares outstanding $1,300,000
Retained earnings amounting to $2,600,000
Treasury stock, based on cost calculations for 5,600 shares is $28,000
Throughout 2021, several common stock-related transactions occurred at Gerlach Inc.
On January 15, a dividend in property amounting to 100,000 shares of Slowdown Company was declared (with a book value of $10.6 per share and fair value of $9.30 per share).
On February 17, the property dividend was distributed.
On April 10, a stock split at 2-for-1 was declared and distributed on all common stock, executed in the form of a stock dividend with the stock's fair value being $4 on this date.
On July 18, a 3% stock dividend was declared and distributed on existing common stock; the fair value for each share was $5.
On December 1, a cash dividend of 50 cents per share on outstanding common shares was declared.
On December 20, the cash dividend was paid out.
Required:
Journalize the transactions and events listed above in the appropriate entry format.
