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, $125 par (40,000 shares authorized, 20,000 shares issued) $2,500,000 Paid-In Capital in Excess of ParPreferred Stock 400,000 Common Stock, $10 par (500,000 shares authorized, 190,000 shares issued) 1,900,000 Paid-In Capital in Excess of ParCommon Stock 250,000 Retained Earnings 10,706,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Issued 50,000 shares of common stock at $15, receiving cash. Issued 10,000 shares of preferred 2% stock at $145. Purchased 30,000 shares of treasury common for $13 per share. Sold 15,000 shares of treasury common for $16 per share. Sold 10,000 shares of treasury common for $11 per share. Declared cash dividends of $2.50 per share on preferred stock and $0.06 per share on common stock. Paid the cash dividends.

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, $125 par (40,000 shares authorized, 20,000 shares issued) $2,500,000 400,000 Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $10 par (500,000 shares authorized, 190,000 shares issued) 1,900,000 250,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings 10,706,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Issued 50,000 shares of common stock at $15, receiving cash. b. Issued 10,000 shares of preferred 2% stock at $145. C. Purchased 30,000 shares of treasury common for $13 per share. d. Sold 15,000 shares of treasury common for $16 per share. e. Sold 10,000 shares of treasury common for $11 per share. f. Declared cash dividends of $2.50 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Required: a. Issued 50,000 shares of common stock at $15, receiving cash. Cash 750,000 Common Stock 500,000 Paid-In Capital in Excess of Par-Common Stock 250,000 b. Issued 10,000 shares of preferred 2% stock at $145. 1,450,000 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback Check My Work b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? Leaming Objective 2, Learning Objective 3 and Learning Objective 5. c. Purchased 30,000 shares of treasury common for $13 per share. Treasury Stock V 390,000 Cash 390,000 Feedback Check My Work d. Sold 15,000 shares of treasury common for $16 per share. Cash 240,000 Treasury Stock Paid-In Capital from Sale of Treasury Stock e. Sold 10,000 shares of treasury common for $11 per share. Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock Feedback Check My Work e. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. Learning Objective 2, Learning Objective 3 and Learning Objective 5. f. Declared cash dividends of $2.50 per share on preferred stock and $0.06 per share on common stock. Cash Dividends Cash Dividends Payable Feedback Check My Work g. Paid the cash dividends. Cash Dividends Payable Cash