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, $50 par (90,000 shares authorized, 45,000 shares issued) $2,250,000 Paid-In Capital in Excess of Par—Preferred Stock 360,000 Common Stock, $10 par (800,000 shares authorized, 180,000 shares issued) 1,800,000 Paid-In Capital in Excess of Par—Common Stock 230,000 Retained Earnings 9,837,000 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 $12 per share. Sold 24,000 shares of treasury common for $15 per share. Issued 23,000 shares of preferred 2% stock at $66. Issued 80,000 shares of common stock at $15, receiving cash. Sold 16,000 shares of treasury common for $10 per share. Declared cash dividends of $1.00 per share on preferred stock and $0.08 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.

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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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, $50 par (90,000 shares authorized, 45,000 shares issued)	$2,250,000
Paid-In Capital in Excess of Par—Preferred Stock	360,000
Common Stock, $10 par (800,000 shares authorized, 180,000 shares issued)	1,800,000
Paid-In Capital in Excess of Par—Common Stock	230,000
Retained Earnings	9,837,000

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 $12 per share.
Sold 24,000 shares of treasury common for $15 per share.
Issued 23,000 shares of preferred 2% stock at $66.
Issued 80,000 shares of common stock at $15, receiving cash.
Sold 16,000 shares of treasury common for $10 per share.
Declared cash dividends of $1.00 per share on preferred stock and $0.08 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.

b.


c.


d.


e.


f.

g.

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