Question Content AreaSelected stock transactionsDiamondback 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:Line Item DescriptionAmountPreferred 2% Stock, $75 par (30,000 shares authorized, 15,000 shares issued)$1,125,000Paid-In Capital in Excess of Par—Preferred Stock180,000Common Stock, $25 par (800,000 shares authorized, 280,000 shares issued)7,000,000Paid-In Capital in Excess of Par—Common Stock910,000Retained Earnings19,536,000During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:Purchased 48,000 shares of treasury common for $30 per share.Sold 24,000 shares of treasury common for $33 per share.Issued 8,000 shares of preferred 2% stock at $93.Issued 80,000 shares of common stock at $28, receiving cash.Sold 16,000 shares of treasury common for $28 per share.Declared cash dividends of $1.50 per share on preferred stock and $0.10 per share on common stock.Paid the cash dividends.

At the beginning of the year, the balances in the equity accounts are as follows:Preferred 2% Stock:…

Answered: Question Content Area Selected stock…

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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Question Content Area

Selected stock transactions

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:

Line Item Description	Amount
Preferred 2% Stock, $75 par (30,000 shares authorized, 15,000 shares issued)	$1,125,000
Paid-In Capital in Excess of Par—Preferred Stock	180,000
Common Stock, $25 par (800,000 shares authorized, 280,000 shares issued)	7,000,000
Paid-In Capital in Excess of Par—Common Stock	910,000
Retained Earnings	19,536,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

Purchased 48,000 shares of treasury common for $30 per share.
Sold 24,000 shares of treasury common for $33 per share.
Issued 8,000 shares of preferred 2% stock at $93.
Issued 80,000 shares of common stock at $28, receiving cash.
Sold 16,000 shares of treasury common for $28 per share.
Declared cash dividends of $1.50 per share on preferred stock and $0.10 per share on common stock.
Paid the cash dividends.

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