Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares of GE common stock that Adams had purchased in February for $37,000 as an investment. GE’s shares had a market value of $35 per share on the declaration date. Prepare the journal entries to record the property dividend on the declaration and payment dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation:

Given:

1. Lost on the investment:

Number of share*Market price  - Investment:

= $1000*35 -  $37,000 = $2000

1. Loss on Investment A/c Dr $2000        

           To GE shares investment A/c $2000

(Being the adjustment is recorded)

3. Retain earning:

Number of share*Market price

= $1000*35 = $35,000

Retained earnings A/c Dr $35,000        

          To Property Dividends Payable $35,000

(Being the entry is made on declaration date)

3. Property dividend

Property Dividends Payable A/c $35,000

            To GE shares investment A/c $35,000

(record the property dividend on the declaration and payment dates)

answer; ///(d) stand out from all of the others;

borrow money from the government then pay the government back 5k