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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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