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, $100 par (80,000 shares authorized, 40,000 shares issued) $4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 800,000 Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued) 1,900,000 Paid-In Capital in Excess of Par—Common Stock 250,000 Retained Earnings 14,734,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Purchased 42,000 shares of treasury common for $13 per share. Sold 21,000 shares of treasury common for $16 per share. Issued 20,000 shares of preferred 2% stock at $116. Issued 70,000 shares of common stock at $17, receiving cash. Sold 14,000 shares of treasury common for $11 per share. Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Treasury Stock Treasury Stock Cash Cash b. Cash Cash Treasury Stock Treasury Stock Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock c. Cash Cash Preferred Stock Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock d. Cash Cash Common Stock Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Common Stock e. Cash Cash Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock Treasury Stock Treasury Stock f. Cash Dividends Cash Dividends Cash Dividends Payable Cash Dividends Payable g. Cash Dividends Payable Cash Dividends Payable Cash Cash

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, $100 par (80,000 shares authorized, 40,000 shares issued) $4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 800,000 Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued) 1,900,000 Paid-In Capital in Excess of Par—Common Stock 250,000 Retained Earnings 14,734,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Purchased 42,000 shares of treasury common for $13 per share. Sold 21,000 shares of treasury common for $16 per share. Issued 20,000 shares of preferred 2% stock at $116. Issued 70,000 shares of common stock at $17, receiving cash. Sold 14,000 shares of treasury common for $11 per share. Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Treasury Stock Treasury Stock Cash Cash b. Cash Cash Treasury Stock Treasury Stock Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock c. Cash Cash Preferred Stock Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock d. Cash Cash Common Stock Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Common Stock e. Cash Cash Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock Treasury Stock Treasury Stock f. Cash Dividends Cash Dividends Cash Dividends Payable Cash Dividends Payable g. Cash Dividends Payable Cash Dividends Payable Cash Cash

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

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, $100 par (80,000 shares authorized, 40,000 shares issued)	$4,000,000
Paid-In Capital in Excess of Par—Preferred Stock	800,000
Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued)	1,900,000
Paid-In Capital in Excess of Par—Common Stock	250,000
Retained Earnings	14,734,000

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

Purchased 42,000 shares of treasury common for $13 per share.
Sold 21,000 shares of treasury common for $16 per share.
Issued 20,000 shares of preferred 2% stock at $116.
Issued 70,000 shares of common stock at $17, receiving cash.
Sold 14,000 shares of treasury common for $11 per share.
Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock.
Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

If an amount box does not require an entry, leave it blank.

a.	Treasury Stock	Treasury Stock
	Cash	Cash
b.	Cash	Cash
	Treasury Stock	Treasury Stock
	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock
c.	Cash	Cash
	Preferred Stock	Preferred Stock
	Paid-In Capital in Excess of Par-Preferred Stock	Paid-In Capital in Excess of Par-Preferred Stock
d.	Cash	Cash
	Common Stock	Common Stock
	Paid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock
e.	Cash	Cash
	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock
	Treasury Stock	Treasury Stock
f.	Cash Dividends	Cash Dividends
	Cash Dividends Payable	Cash Dividends Payable
g.	Cash Dividends Payable	Cash Dividends Payable
	Cash	Cash

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