Buellton Welding Corporation sells and services pipe welding equipment in California. The following selected accounts appear in the ledger of Buellton Welding Corporation on January 1, 2008, the beginning of the current fiscal year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

a. Purchased 25,000 shares of treasury common for \(\$ 650,000\).

b. Sold 18,000 shares of treasury common for \(\$ 576,000\).

c. Sold 10,000 shares of preferred \(2 \%\) stock at \(\$ 80\).

d. Issued 40,000 shares of common stock at \(\$ 30\), receiving cash.

e. Sold 6,000 shares of treasury common for \(\$ 150,000\).

f. Declared cash dividends of \(\$ 1\) per share on preferred stock and \(\$ 0.10\) per share on common stock.
g. Paid the cash dividends.
Instructions Journalize the entries to record the transactions. Identify each entry by letter.objs. 2, 3, 4, 6

Transcribed Image Text:

Preferred 2% Stock, $50 par (100,000 shares authorized, 50,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $15 par (900,000 shares authorized, 600,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings... $ 2,500,000 180,000 9,000,000 1,500,000 13,100,000