Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) $5,200,000 Paid-In Capital in Excess of Par—Preferred Stock 230,000 Common Stock, $5 par (6,000,000 shares authorized, 3,150,000 shares issued) 15,250,000 Paid-In Capital in Excess of Par—Common Stock 1,400,000 Retained Earnings 52,480,000   During the year, the corporation completed a number of transactions affecting the stockholders’ equity. Journalize each of the following transactions and identify each entry by letter:    Purchased 87,500 shares of treasury common for $9 per share.  Sold 55,000 shares of treasury common for $10 per share.  Issued 20,000 shares of preferred 3% stock at $84.  Issued 400,000 shares of common stock at $12, receiving cash.  Sold 18,000 shares of treasury common for $7.75 per share.  Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.  Paid the cash dividends.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued)

$5,200,000

Paid-In Capital in Excess of Par—Preferred Stock

230,000

Common Stock, $5 par (6,000,000 shares authorized, 3,150,000 shares issued)

15,250,000

Paid-In Capital in Excess of Par—Common Stock

1,400,000

Retained Earnings

52,480,000

 

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. Journalize each of the following transactions and identify each entry by letter: 

 

  1. Purchased 87,500 shares of treasury common for $9 per share. 
  2. Sold 55,000 shares of treasury common for $10 per share. 
  3. Issued 20,000 shares of preferred 3% stock at $84. 
  4. Issued 400,000 shares of common stock at $12, receiving cash. 
  5. Sold 18,000 shares of treasury common for $7.75 per share. 
  6. Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock. 
  7. Paid the cash dividends. 
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