Elk River Corporation sells and services pipe welding equipment in Wyoming. The following selected accounts appear in the ledger of Elk River Corporation on January 1, 2006, the beginning of the current fiscal year: Preferred 2% Stock, Rs.100 par (80,000 shares authorized, 18,000 shares issued) Rs. 1,800,000 Paid-In Capital in Excess of Par—Preferred Stock 172,500 Common Stock, Rs.10 par (800,000 shares authorized,500,000 shares issued) 5,000,000 Paid-In Capital in Excess of Par—Common Stock 1,236,000 Retained Earnings 6,450,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: • Purchased 60,000 shares of treasury common for Rs.1,080,000. • Sold 20,000 shares of treasury common for Rs.420,000. • Sold 7,000 shares of preferred 2% stock at Rs.108. • Issued 40,000 shares of common stock at Rs.23, receiving cash. • Sold 35,000 shares of treasury common for Rs.595,000. • Declared cash dividends of Rs.2 per share on preferred stock and Rs.0.16 per share on common stock. • Paid the cash dividends. Instructions: Prepare the journal to record the above transactions.
Elk River Corporation sells and services pipe welding equipment in Wyoming. The following selected accounts appear in the ledger of Elk River Corporation on January 1, 2006, the beginning of the current fiscal year: Preferred 2% Stock, Rs.100 par (80,000 shares authorized, 18,000 shares issued) Rs. 1,800,000 Paid-In Capital in Excess of Par—Preferred Stock 172,500 Common Stock, Rs.10 par (800,000 shares authorized,500,000 shares issued) 5,000,000 Paid-In Capital in Excess of Par—Common Stock 1,236,000 Retained Earnings 6,450,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: • Purchased 60,000 shares of treasury common for Rs.1,080,000. • Sold 20,000 shares of treasury common for Rs.420,000. • Sold 7,000 shares of preferred 2% stock at Rs.108. • Issued 40,000 shares of common stock at Rs.23, receiving cash. • Sold 35,000 shares of treasury common for Rs.595,000. • Declared cash dividends of Rs.2 per share on preferred stock and Rs.0.16 per share on common stock. • Paid the cash dividends. Instructions: Prepare the journal to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Elk River Corporation sells and services pipe welding equipment in Wyoming. The following selected accounts appear in the ledger of Elk River Corporation on January 1, 2006, the beginning of the current fiscal year:
|
Preferred 2% Stock, Rs.100 par (80,000 shares authorized, 18,000 shares issued) |
Rs. 1,800,000 |
|
Paid-In Capital in Excess of Par— |
172,500 |
|
Common Stock, Rs.10 par (800,000 shares authorized,500,000 shares issued) |
5,000,000 |
|
Paid-In Capital in Excess of Par—Common Stock |
1,236,000 |
|
|
6,450,000 |
During the year, the corporation completed a number of transactions affecting the
• Purchased 60,000 shares of treasury common for Rs.1,080,000.
• Sold 20,000 shares of treasury common for Rs.420,000.
• Sold 7,000 shares of preferred 2% stock at Rs.108.
• Issued 40,000 shares of common stock at Rs.23, receiving cash.
• Sold 35,000 shares of treasury common for Rs.595,000.
• Declared cash dividends of Rs.2 per share on preferred stock and Rs.0.16 per share on common stock.
• Paid the cash dividends.
Instructions:
Prepare the journal to record the above transactions.
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