The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year: Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess of Par—Preferred Stock 159,200 Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) 5,610,000 Paid-In Capital in Excess of Par—Common Stock 1,215,500 Retained Earnings 31,497,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 532,900 shares of common stock at $9, receiving cash. Feb. 10 Issued 11,000 shares of preferred 1% stock at $58. Mar. 19 Purchased 45,400 shares of treasury stock for $8 per share. May 16 Sold 21,400 shares of treasury stock for $10 per share. Aug. 25 Sold 4,300 shares of treasury stock for $7 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.07 per share on common stock. 31 Paid the cash dividends. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year: Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess of Par—Preferred Stock 159,200 Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) 5,610,000 Paid-In Capital in Excess of Par—Common Stock 1,215,500 Retained Earnings 31,497,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 532,900 shares of common stock at $9, receiving cash. Feb. 10 Issued 11,000 shares of preferred 1% stock at $58. Mar. 19 Purchased 45,400 shares of treasury stock for $8 per share. May 16 Sold 21,400 shares of treasury stock for $10 per share. Aug. 25 Sold 4,300 shares of treasury stock for $7 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.07 per share on common stock. 31 Paid the cash dividends. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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 Parks Construction Inc. at the beginning of the current fiscal year:
| Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) | $3,980,000 |
| Paid-In Capital in Excess of Par— |
159,200 |
| Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) | 5,610,000 |
| Paid-In Capital in Excess of Par—Common Stock | 1,215,500 |
| 31,497,000 |
During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:
| Jan. | 5 | Issued 532,900 shares of common stock at $9, receiving cash. |
| Feb. | 10 | Issued 11,000 shares of preferred 1% stock at $58. |
| Mar. | 19 | Purchased 45,400 shares of |
| May | 16 | Sold 21,400 shares of treasury stock for $10 per share. |
| Aug. | 25 | Sold 4,300 shares of treasury stock for $7 per share. |
| Dec. | 6 | Declared cash dividends of $0.50 per share on preferred stock and $0.07 per share on common stock. |
| 31 | Paid the cash dividends. |
Expert Solution
Step 1
Treasury stock refers to a method used by the organization to repurchase the issued stock. It is also known with the name of buyback of share. The management has the power to reissue these treasury stock in the future.
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