Question
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $100 par (100,000
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) | $8,000,000 |
Paid-In Capital in Excess of ParPreferred Stock | 440,000 |
Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) | 20,000,000 |
Paid-In Capital in Excess of ParCommon Stock | 2,280,000 |
Retained Earnings | 115,400,000 |
During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows:
a. | Issued 200,000 shares of common stock at $12, receiving cash. |
b. | Issued 8,000 shares of preferred 2% stock at $115. |
c. | Purchased 175,000 shares of treasury common for $10 per share. |
d. | Sold 110,000 shares of treasury common for $14 per share. |
e. | Sold 30,000 shares of treasury common for $8 per share. |
f. | Declared cash dividends of $1.25 per share on preferred stock and $0.08 per share on common stock. |
g. | Paid the cash dividends. |
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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. Refer to the Chart of Accounts for exact wording of account titles.
All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 155/224
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