The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the

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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year:
Preferred 1% Stock, $50 par (100,000 shares authorized,
80,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000,000
Paid-In Capital in Excess of Par-Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000
Common Stock, $3 par (5,000,000 shares authorized,
2,000,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000
Paid-In Capital in Excess of Par - Common Stock . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32,350,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Issued 500,000 shares of common stock at $8, receiving cash.
b. Issued 10,000 shares of preferred 1% stock at $60.
c. Purchased 50,000 shares of treasury common for $7 per share.
d. Sold 20,000 shares of treasury common for $9 per share.
e. Sold 5,000 shares of treasury common for $6 per share.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting

ISBN: 978-1285743615

26th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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