Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $175 par (80,000 shares authorized, 40,000 shares issued) $7,000,000 Paid-In Capital in Excess of Par—Preferred Stock 1,120,000 Common Stock, $10 par (800,000 shares authorized, 210,000 shares issued) 2,100,000 Paid-In Capital in Excess of Par—Common Stock 270,000 Retained Earnings 22,239,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Issued 80,000 shares of common stock at $13, receiving cash. Issued 20,000 shares of preferred 2% stock at $188. Purchased 48,000 shares of treasury common for $15 per share. Sold 24,000 shares of treasury common for $18 per share. Sold 16,000 shares of treasury common for $13 per share. Declared cash dividends of $3.50 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. For a compound transaction, if an amount box does not require an entry, leave it blank. a.  Issued 80,000 shares of common stock at $13, receiving cash.   Cash  fill in the blank 5f4686024fb5007_2 fill in the blank 5f4686024fb5007_3   Common Stock  fill in the blank 5f4686024fb5007_5 fill in the blank 5f4686024fb5007_6   Paid-In Capital in Excess of Par-Common Stock  fill in the blank 5f4686024fb5007_8 fill in the blank 5f4686024fb5007_9   Feedback b.  Issued 20,000 shares of preferred 2% stock at $188.   Cash  fill in the blank 6d2e6efb805b066_2 fill in the blank 6d2e6efb805b066_3   Preferred Stock  fill in the blank 6d2e6efb805b066_5 fill in the blank 6d2e6efb805b066_6   Paid-In Capital in Excess of Par-Preferred Stock  fill in the blank 6d2e6efb805b066_8 fill in the blank 6d2e6efb805b066_9   Feedback c.  Purchased 48,000 shares of treasury common for $15 per share..   Treasury Stock  fill in the blank 4eaab504bfa5079_2     Cash    fill in the blank 4eaab504bfa5079_4   Feedback d.  Sold 24,000 shares of treasury common for $18 per share.   Cash  fill in the blank 55a764fbf031fcb_2 fill in the blank 55a764fbf031fcb_3   Treasury Stock  fill in the blank 55a764fbf031fcb_5 fill in the blank 55a764fbf031fcb_6   Paid-In Capital from Sale of Treasury Stock  fill in the blank 55a764fbf031fcb_8 fill in the blank 55a764fbf031fcb_9   Feedback e.  Sold 16,000 shares of treasury common for $13 per share.   Cash  fill in the blank 301a4f02306c030_2 fill in the blank 301a4f02306c030_3   Paid-In Capital from Sale of Treasury Stock  fill in the blank 301a4f02306c030_5 fill in the blank 301a4f02306c030_6   Treasury Stock  fill in the blank 301a4f02306c030_8 fill in the blank 301a4f02306c030_9   Feedback f.  Declared cash dividends of $3.5 per share on preferred stock and $0.08 per share on common stock.   Cash Dividends  fill in the blank 10554afb407afcc_2     Cash Dividends Payable    fill in the blank 10554afb407afcc_4   Feedback g.  Paid the cash dividends.   Cash Dividends Payable  fill in the blank 9f1b92f7202b06e_2     Cash    fill in the blank 9f1b92f7202b06e_4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Selected Stock Transactions

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

Preferred 2% Stock, $175 par (80,000 shares authorized, 40,000 shares issued) $7,000,000
Paid-In Capital in Excess of Par—Preferred Stock 1,120,000
Common Stock, $10 par (800,000 shares authorized, 210,000 shares issued) 2,100,000
Paid-In Capital in Excess of Par—Common Stock 270,000
Retained Earnings 22,239,000

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

  1. Issued 80,000 shares of common stock at $13, receiving cash.
  2. Issued 20,000 shares of preferred 2% stock at $188.
  3. Purchased 48,000 shares of treasury common for $15 per share.
  4. Sold 24,000 shares of treasury common for $18 per share.
  5. Sold 16,000 shares of treasury common for $13 per share.
  6. Declared cash dividends of $3.50 per share on preferred stock and $0.08 per share on common stock.
  7. Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

a.  Issued 80,000 shares of common stock at $13, receiving cash.

  Cash  fill in the blank 5f4686024fb5007_2 fill in the blank 5f4686024fb5007_3
  Common Stock  fill in the blank 5f4686024fb5007_5 fill in the blank 5f4686024fb5007_6
  Paid-In Capital in Excess of Par-Common Stock  fill in the blank 5f4686024fb5007_8 fill in the blank 5f4686024fb5007_9
 
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b.  Issued 20,000 shares of preferred 2% stock at $188.

  Cash  fill in the blank 6d2e6efb805b066_2 fill in the blank 6d2e6efb805b066_3
  Preferred Stock  fill in the blank 6d2e6efb805b066_5 fill in the blank 6d2e6efb805b066_6
  Paid-In Capital in Excess of Par-Preferred Stock  fill in the blank 6d2e6efb805b066_8 fill in the blank 6d2e6efb805b066_9
 
Feedback

c.  Purchased 48,000 shares of treasury common for $15 per share..

  Treasury Stock  fill in the blank 4eaab504bfa5079_2  
  Cash    fill in the blank 4eaab504bfa5079_4
 
Feedback

d.  Sold 24,000 shares of treasury common for $18 per share.

  Cash  fill in the blank 55a764fbf031fcb_2 fill in the blank 55a764fbf031fcb_3
  Treasury Stock  fill in the blank 55a764fbf031fcb_5 fill in the blank 55a764fbf031fcb_6
  Paid-In Capital from Sale of Treasury Stock  fill in the blank 55a764fbf031fcb_8 fill in the blank 55a764fbf031fcb_9
 
Feedback

e.  Sold 16,000 shares of treasury common for $13 per share.

  Cash  fill in the blank 301a4f02306c030_2 fill in the blank 301a4f02306c030_3
  Paid-In Capital from Sale of Treasury Stock  fill in the blank 301a4f02306c030_5 fill in the blank 301a4f02306c030_6
  Treasury Stock  fill in the blank 301a4f02306c030_8 fill in the blank 301a4f02306c030_9
 
Feedback

f.  Declared cash dividends of $3.5 per share on preferred stock and $0.08 per share on common stock.

  Cash Dividends  fill in the blank 10554afb407afcc_2  
  Cash Dividends Payable    fill in the blank 10554afb407afcc_4
 
Feedback

g.  Paid the cash dividends.

  Cash Dividends Payable  fill in the blank 9f1b92f7202b06e_2  
  Cash    fill in the blank 9f1b92f7202b06e_4
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