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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, 79,500 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

Date Description Post Ref Debit Credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

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