Ask Question
18 July, 15:09

Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams had purchased in February for $39,600 as an investment. GE's shares had a market value of $31 per share on the declaration date.

Prepare the journal entries to record the property dividend on the declaration and payment dates.

1. Record adjustment of stock to fair value

2. Record the journal entry on the declaration date

3. Record the journal entry on the payment date

+3
Answers (1)
  1. 18 July, 17:44
    0
    The journal entries are shown below:

    1. Loss on Investment A/c Dr $1,800 (1,200 shares * $31 - $39,600)

    To GE shares investment A/c $1,800

    (Being the adjustment is recorded)

    2. Retained earnings A/c Dr $37,200 (1,200 shares * $31)

    To Property Dividends Payable $37,200

    (Being the entry is made on declaration date)

    3. Property Dividends Payable A/c $37,200

    To GE shares investment A/c $37,200

    (Being the entry is made on payment date)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams had ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers