Question
Selected stock transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of
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:
| Line Item Description | Amount |
|---|---|
| Preferred 2% Stock, $175 par (50,000 shares authorized, 25,000 shares issued) | $4,375,000 |
| Paid-In Capital in Excess of ParPreferred Stock | 525,000 |
| Common Stock, $25 par (800,000 shares authorized, 280,000 shares issued) | 7,000,000 |
| Paid-In Capital in Excess of ParCommon Stock | 910,000 |
| Retained Earnings | 27,157,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Purchased 48,000 shares of treasury common for $27 per share.
- Sold 24,000 shares of treasury common for $30 per share.
- Issued 13,000 shares of preferred 2% stock at $192.
- Issued 80,000 shares of common stock at $30, receiving cash.
- Sold 16,000 shares of treasury common for $25 per share.
- Declared cash dividends of $3.50 per share on preferred stock and $0.10 per share on common stock.
- Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
If an amount box does not require an entry, leave it blank.
| Transaction | Account | Debit | Credit |
|---|---|---|---|
| a. | CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTreasury Stock | ||
| CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash | |||
| b. | CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash | ||
| CashCommon StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockTreasury Stock | |||
| CashCommon StockPreferred StockPaid-In Capital from Sale of Treasury StockRetained EarningsPaid-In Capital from Sale of Treasury Stock | |||
| c. | CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash | ||
| CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsPreferred StockPreferred Stock | |||
| CashCommon StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockPaid-In Capital in Excess of Par-Preferred Stock | |||
| d. | CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash | ||
| CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCommon Stock | |||
| CashPreferred StockPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury StockPaid-In Capital in Excess of Par-Common Stock | |||
| e. | CashCommon StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockCash | ||
| Cash DividendsCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockPaid-In Capital from Sale of Treasury Stock | |||
| CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTreasury Stock | |||
| f. | CashCash Dividends PayableCash DividendsCommon StockTreasury StockCash Dividends | ||
| CashCash Dividends PayableCash DividendsCommon StockTreasury StockCash Dividends Payable | |||
| g. | CashCash Dividends PayableCash DividendsCommon StockTreasury StockCash Dividends Payable | ||
| CashCash Dividends PayableCash DividendsCommon StockTreasury StockCash |
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ISE International Accounting
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
5th Edition
1260547981, 9781260547986
