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 curre year: Preferred 2% Stock, $75 par (40,000 shares authorized, 20,000 shares issued) $1,500,000 Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $10 par (500,000 shares authorized, 300,000 shares issued) 180,000 3,000,000 390,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings 10,748,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 30,000 shares of treasury common for $15 per share. b. Sold 15,000 shares of treasury common for $18 per share. c. Issued 10,000 shares of preferred 2% stock at $87. d. Issued 50,000 shares of common stock at $17, receiving cash. e. Sold 10,000 shares of treasury common for $13 per share. f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Required:
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 curre year: Preferred 2% Stock, $75 par (40,000 shares authorized, 20,000 shares issued) $1,500,000 Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $10 par (500,000 shares authorized, 300,000 shares issued) 180,000 3,000,000 390,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings 10,748,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 30,000 shares of treasury common for $15 per share. b. Sold 15,000 shares of treasury common for $18 per share. c. Issued 10,000 shares of preferred 2% stock at $87. d. Issued 50,000 shares of common stock at $17, receiving cash. e. Sold 10,000 shares of treasury common for $13 per share. f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
Preferred 2% Stock, $75 par (40,000 shares authorized, 20,000 shares issued)
Paid-In Capital in Excess of Par-Preferred Stock
Common Stock, $10 par (500,000 shares authorized, 300,000 shares issued)
Paid-In Capital in Excess of Par-Common Stock
Retained Earnings
$1,500,000
180,000
3,000,000
390,000
10,748,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Purchased 30,000 shares of treasury common for $15 per share.
b. Sold 15,000 shares of treasury common for $18 per share.
c. Issued 10,000 shares of preferred 2% stock at $87.
d. Issued 50,000 shares of common stock at $17, receiving cash.
e. Sold 10,000 shares of treasury common for $13 per share.
f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
If an amount box does not require an entry, leave it blank.
Transcribed Image Text:b. Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
c. Cash
e.
Preferred Stock
Paid-In Capital in Excess of Par-Preferred Stock
d. Cash
Common Stock
Paid-In Capital in Excess of Par-Common Stock
Cash
Paid-In Capital from Sale of Treasury Stock
Treasury Stock
f. Cash Dividends
Cash Dividends Payable
g. Cash Dividends Payable
Cash
000 000 000
000 000
00
88
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