The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) $ 4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 175,000 Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued) 6,000,000 Paid-In Capital in Excess of Par—Common Stock 1,500,000 Retained Earnings 32,350,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Issued 500,000 shares of common stock at $8, receiving cash Issued 10,000 shares of preferred 1% stock at $60. Purchased 50,000 shares of treasury common for $7 per share. Sold 20,000 shares of treasury common for $9 per share. Sold 5,000 shares of treasury common for $6 per share. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) $ 4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 175,000 Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued) 6,000,000 Paid-In Capital in Excess of Par—Common Stock 1,500,000 Retained Earnings 32,350,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Issued 500,000 shares of common stock at $8, receiving cash Issued 10,000 shares of preferred 1% stock at $60. Purchased 50,000 shares of treasury common for $7 per share. Sold 20,000 shares of treasury common for $9 per share. Sold 5,000 shares of treasury common for $6 per share. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year:
|
Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) |
$ 4,000,000 |
|
Paid-In Capital in Excess of Par— |
175,000 |
|
Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued) |
6,000,000 |
|
Paid-In Capital in Excess of Par—Common Stock |
1,500,000 |
|
|
32,350,000 |
During the year, the corporation completed a number of transactions affecting the
- Issued 500,000 shares of common stock at $8, receiving cash
- Issued 10,000 shares of preferred 1% stock at $60.
- Purchased 50,000 shares of treasury common for $7 per share.
- Sold 20,000 shares of treasury common for $9 per share.
- Sold 5,000 shares of treasury common for $6 per share.
- Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
- Paid the cash dividends.
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