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The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2 % Stock, $ 1

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $175 par shares authorized, 35,000 shares issued)
$6,125,000
Paid-In Capital in Excess of Par-Preferred Stock
Common Stock, $10 par (700,000 shares authorized, 310,000 shares issued)
735,000
Paid-In Capital in Excess of Par-Common Stock
3,100,000
400,000
Retained Earnings
21,963,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Issued 70,000 shares of common stock at $16, receiving cash.
b. Issued 18,000 shares of preferred 2% stock at $188.
c. Purchased 42,000 shares of treasury common for $12 per share.
d. Sold 21,000 shares of treasury common for $15 per share.
e. Sold 14,000 shares of treasury common for $10 per share.
f. Declared cash dividends of $3.50 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.
F. Declared cash dividends of $3.50 per share on preferred stock and $0.06 per share on common stock.
Cash Dividends
Cash Dividends Payable
x
Feedoack
T Check My Work
f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous
occurred; would these transactions have any affect on the amount of the cash dividend?
Learning Objective 2, Learning Objective 4 and Learning Objective 5.
g. Paid the cash dividends.
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