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The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

Preferred 1% Stock, $50 par (100,000 shares authorized, 79,400 shares issued)$3,970,000
Paid-In Capital in Excess of Par—Preferred Stock150,860
Common Stock, $3 par (5,000,000 shares authorized, 2,100,000shares issued)6,300,000
Paid-In Capital in Excess of Par—Common Stock1,260,000
Retained Earnings33,959,000

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:

a.Issued 518,800 shares of common stock at $7,receiving cash.
b.Issued 9,800 shares of preferred 1% stock at $61.
c.Purchased 48,300 shares of treasury common for $7 per share.
d.Sold 19,500 shares of treasury common for $9 per share.
e.Sold 5,000 shares of treasury common for $6 per share.
f.Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
g.Paid the cash dividends.

CHART OF ACCOUNTS Parks Construction Inc. General Ledger

ASSETS
110Cash
120Accounts Receivable
131Notes Receivable
132Interest Receivable
141Inventory
145Office Supplies
151Prepaid Insurance
181Land
193Equipment
194Accumulated Depreciation-Equipment
LIABILITIES
210Accounts Payable
221Notes Payable
226Interest Payable
231Cash Dividends Payable
241Salaries Payable
261Mortgage Note Payable
EQUITY
236Stock Dividends Distributable
311Common Stock
312Paid-In Capital in Excess of Par-Common Stock
315Treasury Stock
321Preferred Stock
322Paid-In Capital in Excess of Par-Preferred Stock
331Paid-In Capital from Sale of Treasury Stock
340Retained Earnings
351Cash Dividends
352Stock Dividends
REVENUE
410Sales
610Interest Revenue
EXPENSES
510Cost of Goods Sold
515Credit Card Expense
520Salaries Expense
531Advertising Expense
532Delivery Expense
533Selling Expenses
534Rent Expense
535Insurance Expense
536Office Supplies Expense
537Organizational Expenses
562Depreciation Expense-Equipment
590Miscellaneous Expense
710Interest Expense

Journalize the entries to record the transactions on December31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY

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