The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $125 par (90,000 shares authorized, 45,000 shares issued) $5,625,000 Paid-In Capital in Excess of Par—Preferred Stock 900,000 Common Stock, $20 par (800,000 shares authorized, 290,000 shares issued) 5,800,000 Paid-In Capital in Excess of Par—Common Stock 750,000 Retained Earnings 27,719,000 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 $24, receiving cash. Issued 23,000 shares of preferred 2% stock at $137. Purchased 48,000 shares of treasury common for $23 per share. Sold 24,000 shares of treasury common for $26 per share. Sold 16,000 shares of treasury common for $21 per share. Declared cash dividends of $2.50 per share on preferred stock and $0.04 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 $24, receiving cash. Cash Common Stock Paid-In Capital in Excess of Par-Common Stock b. Issued 23,000 shares of preferred 2% stock at $137. Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock c. Purchased 48,000 shares of treasury common for $23 per share.. Treasury Stock Cash d. Sold 24,000 shares of treasury common for $26 per share. Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock e. Sold 16,000 shares of treasury common for $21 per share. Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock f. Declared cash dividends of $2.5 per share on preferred stock and $0.04 per share on common stock. Cash Dividends Payable Common Stock g. Paid the cash dividends.

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $125 par (90,000 shares authorized, 45,000 shares issued) $5,625,000 Paid-In Capital in Excess of Par—Preferred Stock 900,000 Common Stock, $20 par (800,000 shares authorized, 290,000 shares issued) 5,800,000 Paid-In Capital in Excess of Par—Common Stock 750,000 Retained Earnings 27,719,000 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 $24, receiving cash. Issued 23,000 shares of preferred 2% stock at $137. Purchased 48,000 shares of treasury common for $23 per share. Sold 24,000 shares of treasury common for $26 per share. Sold 16,000 shares of treasury common for $21 per share. Declared cash dividends of $2.50 per share on preferred stock and $0.04 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 $24, receiving cash. Cash Common Stock Paid-In Capital in Excess of Par-Common Stock b. Issued 23,000 shares of preferred 2% stock at $137. Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock c. Purchased 48,000 shares of treasury common for $23 per share.. Treasury Stock Cash d. Sold 24,000 shares of treasury common for $26 per share. Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock e. Sold 16,000 shares of treasury common for $21 per share. Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock f. Declared cash dividends of $2.5 per share on preferred stock and $0.04 per share on common stock. Cash Dividends Payable Common Stock g. Paid the cash dividends.

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

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

Preferred 2% Stock, $125 par (90,000 shares authorized, 45,000 shares issued)	$5,625,000
Paid-In Capital in Excess of Par—Preferred Stock	900,000
Common Stock, $20 par (800,000 shares authorized, 290,000 shares issued)	5,800,000
Paid-In Capital in Excess of Par—Common Stock	750,000
Retained Earnings	27,719,000

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 $24, receiving cash.
Issued 23,000 shares of preferred 2% stock at $137.
Purchased 48,000 shares of treasury common for $23 per share.
Sold 24,000 shares of treasury common for $26 per share.
Sold 16,000 shares of treasury common for $21 per share.
Declared cash dividends of $2.50 per share on preferred stock and $0.04 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 $24, receiving cash.

	Cash
	Common Stock
	Paid-In Capital in Excess of Par-Common Stock

b. Issued 23,000 shares of preferred 2% stock at $137.

	Cash
	Preferred Stock
	Paid-In Capital in Excess of Par-Preferred Stock

c. Purchased 48,000 shares of treasury common for $23 per share..

	Treasury Stock
	Cash

d. Sold 24,000 shares of treasury common for $26 per share.

	Cash
	Treasury Stock
	Paid-In Capital from Sale of Treasury Stock

e. Sold 16,000 shares of treasury common for $21 per share.

	Cash
	Paid-In Capital from Sale of Treasury Stock
	Treasury Stock

f. Declared cash dividends of $2.5 per share on preferred stock and $0.04 per share on common stock.

	Cash Dividends Payable
	Common Stock

g. Paid the cash dividends.

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