Question
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:
Jan. 5 Issued 521,500 shares of common stock at $9, receiving cash.
Feb. 10 Issued 9,100 shares of preferred 1% stock at $59.
Mar. 19 Purchased 51,600 shares of treasury common for $6 per share.
May 16 Sold 18,700 shares of treasury common for $8 per share.
Aug. 25 Sold 4,800 shares of treasury common for $5 per share.
Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.06 per share on common stock.
31 Paid the cash dividends.
CHART OF ACCOUNTS Parks 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
236 Stock Dividends Distributable
241 Salaries Payable
261 Mortgage Note Payable
EQUITY
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
390 Income Summary
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
JOURNAL
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