Journalize the entries to record the transactions. Identify each entry by letter.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
b.
Paid-In Capital in Excess of Par-Preferred Stock
g.
Common Stock. $5 par (5,000,000 shares authorized, 4,000,000
shares issued)
Paid-In Capital in Excess of Par-Common Stock
Retained Earnings
Issued 220,000 shares of common stock at $14, receiving cash.
$ 8,000,000
During the year, the corporation completed a number of transactions affecting the
stockholders' equity. They are summarized as follows:
Paid the cash dividends.
440,000
INSTRUCTIONS
20,000,000
Issued 12,000 shares of preferred 2% stock at $110.
c. Purchased 160,000 shares of treasury common for $10 per share.
d. Sold 105,000 shares of treasury common for $16 per share.
Sold 40,000 shares of treasury common for $8 per share.
f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share
on common stock.
2,280,000
115,400,000
Journalize the entries to record the transactions. Identify each entry by letter.
Transcribed Image Text: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) b. Paid-In Capital in Excess of Par-Preferred Stock g. Common Stock. $5 par (5,000,000 shares authorized, 4,000,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings Issued 220,000 shares of common stock at $14, receiving cash. $ 8,000,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Paid the cash dividends. 440,000 INSTRUCTIONS 20,000,000 Issued 12,000 shares of preferred 2% stock at $110. c. Purchased 160,000 shares of treasury common for $10 per share. d. Sold 105,000 shares of treasury common for $16 per share. Sold 40,000 shares of treasury common for $8 per share. f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share on common stock. 2,280,000 115,400,000 Journalize the entries to record the transactions. Identify each entry by letter.
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