On January 1, 2016, Gerlach Inc. had the following account balances in its share

Question

On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts.

During 2016, Gerlach Inc. had several transactions relating to common stock.

Required:

Record the above transactions and events in journal entry format.

Common stock, $1 par, 250,000 shares issued 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000

Explanation / Answer

Date Account Title Debit Credit $ $ January 15 Loss on investment in available-for-sale securities 100,000 Investment in available-for-sale securities 100,000 Retained earnings 900,000 Property dividends payable 900,000 February 17 Property dividends payable 900,000 Investment in available-for-sale securities 900,000 April 10 No entry required July 18 Retained earnings 36,750 Common stock dividends distributable 7,350 Paid in capital - excess of par, common 29,400 Common stock dividends distributable 7,350 Common stock 7,350 December 1 Retained earnings 126,175 Dividends payable 126,175 December 20 Dividends payable 126,175 Cash 126,175

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---