The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) $6,000,000 Paid-In Capital in Excess of Par—Preferred Stock 420,000 Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued) 24,000,000 Paid-In Capital in Excess of Par—Common Stock 1,850,000 Retained Earnings 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 400,000 shares of common stock at $11, receiving cash. Feb. 10 Issued 5,000 shares of preferred 2% stock at $90. Mar. 19 Purchased 150,000 shares of treasury common for $10 per share. May 16 Sold 80,000 shares of treasury common for $13 per share. Aug. 25 Sold 20,000 shares of treasury common for $9 per share. Dec. 6 Declared cash dividends of $1.50 per share on preferred stock and $0.06 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. CHART OF ACCOUNTS Parks Construction Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of accoun

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) $6,000,000 Paid-In Capital in Excess of Par—Preferred Stock 420,000 Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued) 24,000,000 Paid-In Capital in Excess of Par—Common Stock 1,850,000 Retained Earnings 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 400,000 shares of common stock at $11, receiving cash. Feb. 10 Issued 5,000 shares of preferred 2% stock at $90. Mar. 19 Purchased 150,000 shares of treasury common for $10 per share. May 16 Sold 80,000 shares of treasury common for $13 per share. Aug. 25 Sold 20,000 shares of treasury common for $9 per share. Dec. 6 Declared cash dividends of $1.50 per share on preferred stock and $0.06 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. CHART OF ACCOUNTS Parks Construction Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of accoun

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

Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued)	$6,000,000
Paid-In Capital in Excess of Par—Preferred Stock	420,000
Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued)	24,000,000
Paid-In Capital in Excess of Par—Common Stock	1,850,000
Retained Earnings	115,400,000

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

Jan.	5	Issued 400,000 shares of common stock at $11, receiving cash.
Feb.	10	Issued 5,000 shares of preferred 2% stock at $90.
Mar.	19	Purchased 150,000 shares of treasury common for $10 per share.
May	16	Sold 80,000 shares of treasury common for $13 per share.
Aug.	25	Sold 20,000 shares of treasury common for $9 per share.
Dec.	6	Declared cash dividends of $1.50 per share on preferred stock and $0.06 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.

CHART OF ACCOUNTS

Parks Construction Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
AGSETS
LIABILITIES
EQUITY
1
11
11
13
14
15
16
17

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