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 (60,000 shares authorized, 30,000 shares issued) $4,500,000 Paid In Capital in Excess of ParPreferred Stock 900,000 Common Stock, $20 par (500,000 shares authorized, 320,000 shares issued) 6,400,000 Paid In Capital in Excess of ParCommon Stock 830,000 Retained Earnings 26,776,000 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 $25, receiving cash Issued 15,000 shares of preferred 2 stock at $166 Purchased 30,000 shares of treasury common for $21 per share Sold 15,000 shares of treasury common for $24 per share Sold 10,000 shares of treasury common for $19 per share Declared cash dividends of $3 00 per share on preferred stock and $0 04 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 50,000 shares of common stock at $25, receiving cash Cash Common Stock Paid In Capital in Excess of Par Common Stock Feedback a What is the company receiving for issuing the shares At what value do the common and preferred stock accounts have to be recorded b Issued 15,000 shares of preferred 2 stock at $166 Cash Preferred Stock Paid In Capital in Excess of Par Preferred Stock Feedback b What is the company receiving for issuing the shares At what value do the common and preferred stock accounts have to be recorded c Purchased 30,000 shares of treasury common for $21 per share Treasury Stock Cash Feedback c The repurchase price of treasury stock becomes the new base value recorded as a debit to Treasury Stock and a credit to Cash d Sold 15,000 shares of treasury common for $24 per share Cash Treasury Stock Paid In Capital from Sale of Treasury Stock Feedback d 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 e Sold 10,000 shares of treasury common for $19 per share Cash Paid In Capital from Sale of Treasury Stock Treasury Stock Feedback 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 f Declared cash dividends of $3 per share on preferred stock and $0 04 per share on common stock Cash Dividends Cash Dividends Payable Feedback f On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend Keep in mind the previous stock transactions that have occurred would these transactions have any affect on the amount of the cash dividend g Paid the cash dividends Cash Dividends Payable Cash

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Posted on Aug 13, 2024

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 (60,000 shares authorized, 30,000 shares issued)	$4,500,000
Paid-In Capital in Excess of ParPreferred Stock	900,000
Common Stock, $20 par (500,000 shares authorized, 320,000 shares issued)	6,400,000
Paid-In Capital in Excess of ParCommon Stock	830,000
Retained Earnings	26,776,000

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 $25, receiving cash.
Issued 15,000 shares of preferred 2% stock at $166.
Purchased 30,000 shares of treasury common for $21 per share.
Sold 15,000 shares of treasury common for $24 per share.
Sold 10,000 shares of treasury common for $19 per share.
Declared cash dividends of $3.00 per share on preferred stock and $0.04 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 50,000 shares of common stock at $25, receiving cash.

	Cash
	Common Stock
	Paid-In Capital in Excess of Par-Common Stock

Feedback

a. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

b. Issued 15,000 shares of preferred 2% stock at $166.

	Cash
	Preferred Stock
	Paid-In Capital in Excess of Par-Preferred Stock

Feedback

b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

c. Purchased 30,000 shares of treasury common for $21 per share..

	Treasury Stock
	Cash

Feedback

c. The repurchase price of treasury stock becomes the new base value recorded as a debit to Treasury Stock and a credit to Cash.

d. Sold 15,000 shares of treasury common for $24 per share.

	Cash
	Treasury Stock
	Paid-In Capital from Sale of Treasury Stock

Feedback

d. 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.

e. Sold 10,000 shares of treasury common for $19 per share.

	Cash
	Paid-In Capital from Sale of Treasury Stock
	Treasury Stock

Feedback

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.

f. Declared cash dividends of $3 per share on preferred stock and $0.04 per share on common stock.

	Cash Dividends
	Cash Dividends Payable

Feedback

f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend?

g. Paid the cash dividends.