Chapter 12: Stock The following accounts appear in the ledeer of Biscayne Bay Water Inc. at the beginning of the current year: Preferred 2% Stock, $125 par (70,000 shares authorized, 35,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $25 par (500,000 shares authorized, 200,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $4,375,000 840,000 5,000,000 430,000 2,818,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 20,000 shares of treasury common for $29 per share. Sold 10,000 shares of treasury common for $32 per share. C. Issued 15,000 shares of preferred 2% stock at $133. d. Issued 55,000 shares of common stock at $31, receiving cash. e. Sold 12,000 shares of treasury common for $27 per share. f. Declared cash dividends of $3.00 per share on preferred stock and $0.08 per share on common stock. g. Paid the cash dividends. Date Description Post Ref Debit Credit