The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $150 par (50,000 shares authorized, 25,000 shares issued) $3,750,000 Paid-In Capital in Excess of Par—Preferred Stock 450,000 Common Stock, $15 par (800,000 shares authorized, 220,000 shares issued) 3,300,000 Paid-In Capital in Excess of Par—Common Stock 430,000 Retained Earnings 16,812,000 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 $18, receiving cash. Issued 13,000 shares of preferred 2% stock at $168. Purchased 48,000 shares of treasury common for $20 per share. Sold 24,000 shares of treasury common for $23 per share. Sold 16,000 shares of treasury common for $18 per share. Declared cash dividends of $3.00 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 $18, receiving cash. Cash fill in the blank b89eabfed016066_2 fill in the blank b89eabfed016066_3 Common Stock fill in the blank b89eabfed016066_5 fill in the blank b89eabfed016066_6 Paid-In Capital in Excess of Par-Common Stock fill in the blank b89eabfed016066_8 fill in the blank b89eabfed016066_9 Feedback a. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? b. Issued 13,000 shares of preferred 2% stock at $168. Cash fill in the blank b21d76fa4fdb04b_2 fill in the blank b21d76fa4fdb04b_3 Preferred Stock fill in the blank b21d76fa4fdb04b_5 fill in the blank b21d76fa4fdb04b_6 Paid-In Capital in Excess of Par-Preferred Stock fill in the blank b21d76fa4fdb04b_8 fill in the blank b21d76fa4fdb04b_9 Feedback b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? c. Purchased 48,000 shares of treasury common for $20 per share.. Treasury Stock fill in the blank c82f48f09ff7fd9_2 Cash fill in the blank c82f48f09ff7fd9_4 Feedback c. The purchase of treasury stock is typically recorded using the cost method. d. Sold 24,000 shares of treasury common for $23 per share. Cash fill in the blank 85ce5b043010073_2 fill in the blank 85ce5b043010073_3 Treasury Stock fill in the blank 85ce5b043010073_5 fill in the blank 85ce5b043010073_6 Paid-In Capital from Sale of Treasury Stock fill in the blank 85ce5b043010073_8 fill in the blank 85ce5b043010073_9 Feedback d. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. e. Sold 16,000 shares of treasury common for $18 per share. Cash fill in the blank 590fa0f89021009_2 fill in the blank 590fa0f89021009_3 Paid-In Capital from Sale of Treasury Stock fill in the blank 590fa0f89021009_5 fill in the blank 590fa0f89021009_6 Treasury Stock fill in the blank 590fa0f89021009_8 fill in the blank 590fa0f89021009_9 Feedback e. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. f. Declared cash dividends of $3 per share on preferred stock and $0.08 per share on common stock. Cash Dividends fill in the blank c03b2dfd0f9d04e_2 Cash Dividends Payable fill in the blank c03b2dfd0f9d04e_4 Feedback f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend? g. Paid the cash dividends. Cash Dividends Payable fill in the blank 861b56f7d028fe9_2 Cash

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $150 par (50,000 shares authorized, 25,000 shares issued) $3,750,000 Paid-In Capital in Excess of Par—Preferred Stock 450,000 Common Stock, $15 par (800,000 shares authorized, 220,000 shares issued) 3,300,000 Paid-In Capital in Excess of Par—Common Stock 430,000 Retained Earnings 16,812,000 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 $18, receiving cash. Issued 13,000 shares of preferred 2% stock at $168. Purchased 48,000 shares of treasury common for $20 per share. Sold 24,000 shares of treasury common for $23 per share. Sold 16,000 shares of treasury common for $18 per share. Declared cash dividends of $3.00 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 $18, receiving cash. Cash fill in the blank b89eabfed016066_2 fill in the blank b89eabfed016066_3 Common Stock fill in the blank b89eabfed016066_5 fill in the blank b89eabfed016066_6 Paid-In Capital in Excess of Par-Common Stock fill in the blank b89eabfed016066_8 fill in the blank b89eabfed016066_9 Feedback a. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? b. Issued 13,000 shares of preferred 2% stock at $168. Cash fill in the blank b21d76fa4fdb04b_2 fill in the blank b21d76fa4fdb04b_3 Preferred Stock fill in the blank b21d76fa4fdb04b_5 fill in the blank b21d76fa4fdb04b_6 Paid-In Capital in Excess of Par-Preferred Stock fill in the blank b21d76fa4fdb04b_8 fill in the blank b21d76fa4fdb04b_9 Feedback b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded? c. Purchased 48,000 shares of treasury common for $20 per share.. Treasury Stock fill in the blank c82f48f09ff7fd9_2 Cash fill in the blank c82f48f09ff7fd9_4 Feedback c. The purchase of treasury stock is typically recorded using the cost method. d. Sold 24,000 shares of treasury common for $23 per share. Cash fill in the blank 85ce5b043010073_2 fill in the blank 85ce5b043010073_3 Treasury Stock fill in the blank 85ce5b043010073_5 fill in the blank 85ce5b043010073_6 Paid-In Capital from Sale of Treasury Stock fill in the blank 85ce5b043010073_8 fill in the blank 85ce5b043010073_9 Feedback d. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. e. Sold 16,000 shares of treasury common for $18 per share. Cash fill in the blank 590fa0f89021009_2 fill in the blank 590fa0f89021009_3 Paid-In Capital from Sale of Treasury Stock fill in the blank 590fa0f89021009_5 fill in the blank 590fa0f89021009_6 Treasury Stock fill in the blank 590fa0f89021009_8 fill in the blank 590fa0f89021009_9 Feedback e. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares. f. Declared cash dividends of $3 per share on preferred stock and $0.08 per share on common stock. Cash Dividends fill in the blank c03b2dfd0f9d04e_2 Cash Dividends Payable fill in the blank c03b2dfd0f9d04e_4 Feedback f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend? g. Paid the cash dividends. Cash Dividends Payable fill in the blank 861b56f7d028fe9_2 Cash

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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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, $150 par (50,000 shares authorized, 25,000 shares issued)	$3,750,000
Paid-In Capital in Excess of Par—Preferred Stock	450,000
Common Stock, $15 par (800,000 shares authorized, 220,000 shares issued)	3,300,000
Paid-In Capital in Excess of Par—Common Stock	430,000
Retained Earnings	16,812,000

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 $18, receiving cash.
Issued 13,000 shares of preferred 2% stock at $168.
Purchased 48,000 shares of treasury common for $20 per share.
Sold 24,000 shares of treasury common for $23 per share.
Sold 16,000 shares of treasury common for $18 per share.
Declared cash dividends of $3.00 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 $18, receiving cash.

Cash	fill in the blank b89eabfed016066_2	fill in the blank b89eabfed016066_3
Common Stock	fill in the blank b89eabfed016066_5	fill in the blank b89eabfed016066_6
Paid-In Capital in Excess of Par-Common Stock	fill in the blank b89eabfed016066_8	fill in the blank b89eabfed016066_9

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a. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

b. Issued 13,000 shares of preferred 2% stock at $168.

Cash	fill in the blank b21d76fa4fdb04b_2	fill in the blank b21d76fa4fdb04b_3
Preferred Stock	fill in the blank b21d76fa4fdb04b_5	fill in the blank b21d76fa4fdb04b_6
Paid-In Capital in Excess of Par-Preferred Stock	fill in the blank b21d76fa4fdb04b_8	fill in the blank b21d76fa4fdb04b_9

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b. What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

c. Purchased 48,000 shares of treasury common for $20 per share..

	Treasury Stock	fill in the blank c82f48f09ff7fd9_2
	Cash		fill in the blank c82f48f09ff7fd9_4

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c. The purchase of treasury stock is typically recorded using the cost method.

d. Sold 24,000 shares of treasury common for $23 per share.

Cash	fill in the blank 85ce5b043010073_2	fill in the blank 85ce5b043010073_3
Treasury Stock	fill in the blank 85ce5b043010073_5	fill in the blank 85ce5b043010073_6
Paid-In Capital from Sale of Treasury Stock	fill in the blank 85ce5b043010073_8	fill in the blank 85ce5b043010073_9

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d. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares.

e. Sold 16,000 shares of treasury common for $18 per share.

Cash	fill in the blank 590fa0f89021009_2	fill in the blank 590fa0f89021009_3
Paid-In Capital from Sale of Treasury Stock	fill in the blank 590fa0f89021009_5	fill in the blank 590fa0f89021009_6
Treasury Stock	fill in the blank 590fa0f89021009_8	fill in the blank 590fa0f89021009_9

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e. What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares.

f. Declared cash dividends of $3 per share on preferred stock and $0.08 per share on common stock.

	Cash Dividends	fill in the blank c03b2dfd0f9d04e_2
	Cash Dividends Payable		fill in the blank c03b2dfd0f9d04e_4

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f. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend?

g. Paid the cash dividends.

	Cash Dividends Payable	fill in the blank 861b56f7d028fe9_2
	Cash

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