Question
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock,
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $150 par (80,000 shares authorized, 40,000 shares issued) | $6,000,000 |
Paid-In Capital in Excess of ParPreferred Stock | 960,000 |
Common Stock, $15 par (800,000 shares authorized, 330,000 shares issued) | 4,950,000 |
Paid-In Capital in Excess of ParCommon Stock | 640,000 |
Retained Earnings | 26,606,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 80,000 shares of common stock at $18, receiving cash.
- Issued 20,000 shares of preferred 2% stock at $168.
- Purchased 48,000 shares of treasury common for $19 per share.
- Sold 24,000 shares of treasury common for $22 per share.
- Sold 16,000 shares of treasury common for $17 per share.
- Declared cash dividends of $3.00 per share on preferred stock and $0.06 per share on common stock.
- Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued 80,000 shares of common stock at $18, receiving cash.
| Cash | ||
Common Stock | |||
Paid-In Capital in Excess of Par-Common Stock |
b. Issued 20,000 shares of preferred 2% stock at $168.
| Cash | ||
Preferred Stock | |||
Paid-In Capital in Excess of Par-Preferred Stock |
c. Purchased 48,000 shares of treasury common for $19 per share..
| Treasury Stock | ||
Cash |
d. Sold 24,000 shares of treasury common for $22 per share.
| Cash | ||
Treasury Stock | |||
Paid-In Capital from Sale of Treasury Stock |
e. Sold 16,000 shares of treasury common for $17 per share.
| Cash | ||
Paid-In Capital from Sale of Treasury Stock | |||
Treasury Stock |
f. Declared cash dividends of $3 per share on preferred stock and $0.06 per share on common stock.
| Cash Dividends | ||
Cash Dividends Payable |
g. Paid the cash dividends.
| Cash Dividends Payable | ||
Cash |
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