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

Explanation:

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)

answer; intensive use of a sales force and is relatively costly;

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20