ournalize each of the following transactions and identify each entry by letter: Purchased 87,500 shares of treasury common for $10 per share. Sold 55,000 shares of treasury common for $12 per share. Issued 20,000 shares of preferred 3% stock at $83. 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.
Slickback Welding & Fabrication Corporation sells and services pipe welding equipment in Michigan. The following selected accounts appear in the ledger of Slickback Welding & Fabrication at the beginning of the current year:
|
Preferred 3% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) |
$5,200,000 |
|
Paid-In Capital in Excess of Par— |
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 |
|
|
52,480,000 |
During the year, the corporation completed a number of transactions affecting the
- Purchased 87,500 shares of treasury common for $10 per share.
- Sold 55,000 shares of treasury common for $12 per share.
- Issued 20,000 shares of preferred 3% stock at $83.
- 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.
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