Question
Selected stock transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger
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, $150 par (30,000 shares authorized, 15,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $15 par (600,000 shares authorized, 310,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $2,250,000 360,000 4,650,000 600,000 16,663,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 36,000 shares of treasury common for $20 per share. b. Sold 18,000 shares of treasury common for $23 per share. c. Issued 8,000 shares of preferred 2% stock at $168. d. Issued 60,000 shares of common stock at $19, receiving cash. e. Sold 12,000 shares of treasury common for $18 per share. f. Declared cash dividends of $3.00 per share on preferred stock and $0.08 per share on common stock. 9. Paid the cash dividends.
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