The following selected accounts appear in the ledger of Patton Environmental Inc. at the beginning of the current fiscal year: Preferred 2% Stock, $125 par (90,000 shares authorized, 45,000 shares issued) $5,625,000 Paid-In Capital in Excess of ParPreferred Stock 900,000 Common Stock, $25 par (700,000 shares authorized, 240,000 shares issued) 6,000,000 Paid-In Capital in Excess of ParCommon Stock 780,000 Retained Earnings 28,207,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Issued 70,000 shares of common stock at $30, receiving cash. Issued 23,000 shares of preferred 2% stock at $140. Purchased 42,000 shares of treasury common for $1,092,000. Sold 21,000 shares of treasury common for $609,000. Sold 14,000 shares of treasury common for $336,000. Declared cash dividends of $2.5 per share on preferred stock and $0.08 per share on common stock. Paid the cash dividends. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Required: a. Issued 70,000 shares of common stock at $30, receiving cash. Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Feedback a. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? Learning Objective 3, Learning Objective 4 and Learning Objective 5. b. Issued 23,000 shares of preferred 2% stock at $140. Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? Learning Objective 3, Learning Objective 4 and Learning Objective 5. c. Purchased 42,000 shares of treasury common for $1,092,000. Treasury Stock Cash Feedback c. The repurchase price of treasury stock becomes the new base value recorded as a debit to Treasury Stock and a credit to Cash. Learning Objective 3, Learning Objective 4 and Learning Objective 5. d. Sold 21,000 shares of treasury common for $609,000. Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Feedback d. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. Learning Objective 3, Learning Objective 4 and Learning Objective 5. e. Sold 14,000 shares of treasury common for $336,000. Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock Feedback e. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. Learning Objective 3, Learning Objective 4 and Learning Objective 5. f. Declared cash dividends of $2.5 per share on preferred stock and $0.08 per share on common stock. Cash Dividends Cash Dividends Payable Feedback f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend? Learning Objective 3, Learning Objective 4 and Learning Objective 5. g. Paid the cash dividends. Cash Dividends Payable Cash Feedback g. What will the stockholders receive from the company on this date? Learning Objective 3, Learning Objective 4 and Learning Objective 5. Feedback Partially correct Check My Work