Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year: Preferred 2% Stock, $75 par

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

Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued)$6,000,000Paid-In Capital in Excess of ParPreferred Stock420,000Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued)24,000,000Paid-In Capital in Excess of ParCommon Stock1,850,000Retained Earnings115,400,000During the year, the corporation completed a number of transactions affecting thestockholders' equity. They are summarized as follows:

Jan.5Issued 400,000 shares ofcommon stockat $11, receiving cash.Feb.10Issued 5,000 shares of preferred 2% stock at $90.Mar.19Purchased 150,000 shares of treasury stock for $10 per share.May16Sold 80,000 shares of treasury stock for $13 per share.Aug.25Sold 20,000 shares of treasury stock for $9 per share.Dec.6Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.31Paid the cash dividends.Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T Horngren, Walter T Harrison

9th Edition

132959674, 978-0132569057

More Books

Students also viewed these Accounting questions