CHapter 12 Homework Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) $4,800,000 Paid-In Capital in Excess of Par-Preferred Stock 210,000 Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) 15,750,000 Paid-In Capital in Excess of Par-Common Stock 1,400,000 Retained Earnings 52,840,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 87,500 shares of treasury common for $8 per share. b. Sold 55,000 shares of treasury common for $11 per share. c. Issued 20,000 shares of preferred 2% stock at $84. d. Issued 400,000 shares of common stock at $13, receiving cash. e. Sold 18,000 shares of treasury common for $7.50 per share. f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock. g. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Treasury Stock v 700,000 Cash 700,000 Cash b. 605,000 Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Treasury Stock v 700,000 a. Cash 700,000 Cash 605,000 b. Treasury Stock v 1,600,000 X Paid-In Capital from Sale of Treasury Stock v 80,000 Cash 520,000 X C. Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock y Cash v d. Common Stock v Paid-In Capital in Excess of Par-Common Stock Cash e. Paid-In Capital from Sale of Treasury Stock v Treasury Stock: Cash Dividends f. Cash Dividends Payable Cash d. Common Stock / Paid-In Capital in Excess of Par-Common Stock v Cash e. Paid-In Capital from Sale of Treasury Stock Treasury Stock v Cash Dividends f. Cash Dividends Payable Cash Dividends Payable v g. Cash v Feedback Y Check My Work (a) At what value should the treasury shares be recorded: at par or the price paid? (b) & (e) Are the treasury shares being resold at a value higher than or lower than the amount that the compan the shares? (c) & (d) At what value do common and preferred stock accounts have to be recorded