Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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, 79,500 shares issued) | $3,975,000 |
Paid-In Capital in Excess of ParPreferred Stock | 151,050 |
Common Stock, $3 par (5,000,000 shares authorized, 2,460,000 shares issued) | 7,380,000 |
Paid-In Capital in Excess of ParCommon Stock | 1,722,000 |
Retained Earnings | 34,910,000 |
During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows:
a. | Issued 521,500 shares of common stock at $9, receiving cash. |
b. | Issued 9,100 shares of preferred 1% stock at $59. |
c. | Purchased 51,600 shares of treasury common for $6 per share. |
d. | Sold 18,700 shares of treasury common for $8 per share. |
e. | Sold 4,800 shares of treasury common for $5 per share. |
f. | Declared cash dividends of $0.50 per share on preferred stock and $0.06 per share on common stock. |
g. | Paid the cash dividends. |
Required:
Journalize the entries to record the transactions. |
CHART OF ACCOUNTSParks Construction Inc.General Ledger
ASSETS | |
---|---|
110 | Cash |
120 | Accounts Receivable |
131 | Notes Receivable |
132 | Interest Receivable |
141 | Inventory |
145 | Office Supplies |
151 | Prepaid Insurance |
181 | Land |
193 | Equipment |
194 | Accumulated Depreciation-Equipment |
LIABILITIES | |
---|---|
210 | Accounts Payable |
221 | Notes Payable |
226 | Interest Payable |
231 | Cash Dividends Payable |
241 | Salaries Payable |
261 | Mortgage Note Payable |
EQUITY | |
---|---|
236 | Stock Dividends Distributable |
311 | Common Stock |
312 | Paid-In Capital in Excess of Par-Common Stock |
315 | Treasury Stock |
321 | Preferred Stock |
322 | Paid-In Capital in Excess of Par-Preferred Stock |
331 | Paid-In Capital from Sale of Treasury Stock |
340 | Retained Earnings |
351 | Cash Dividends |
352 | Stock Dividends |
REVENUE | |
---|---|
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
---|---|
510 | Cost of Goods Sold |
515 | Credit Card Expense |
520 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Selling Expenses |
534 | Rent Expense |
535 | Insurance Expense |
536 | Office Supplies Expense |
537 | Organizational Expenses |
562 | Depreciation Expense-Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
Journalize the entries to record the transactions on December 31.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started