Problem #2 Selected stock transactions The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current 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.
Problem #2 Selected stock transactions The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem #2 Selected stock transactions
The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year:
|
Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) |
$ 4,000,000 |
|
Paid-In Capital in Excess of Par— |
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 |
|
|
32,350,000 |
During the year, the corporation completed a number of transactions affecting the
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.
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