The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) . . . . . . $ 8,000,000Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,000Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) . . . . . . . 20,000,000Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,280,000Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,400,000During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:a. Issued 200,000 shares of common stock at $12, receiving cash.b. Issued 8,000 shares of preferred 2% stock at $115.c. Purchased 175,000 shares of treasury common for $10 per share.d. Sold 110,000 shares of treasury common for $14 per share.e. Sold 30,000 shares of treasury common for $8 per share.f. Declared cash dividends of $1.25 per share on preferred stock and $0.08 per share on common stock.g. Paid the cash dividends.InstructionsJournalize the entries to record the transactions. Identify each entry by letter.
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning
of the current year:
Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) . . . . . . $ 8,000,000
Paid-In Capital in Excess of Par—
Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) . . . . . . . 20,000,000
Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,280,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,400,000
During the year, the corporation completed a number of transactions affecting the
a. Issued 200,000 shares of common stock at $12, receiving cash.
b. Issued 8,000 shares of preferred 2% stock at $115.
c. Purchased 175,000 shares of treasury common for $10 per share.
d. Sold 110,000 shares of treasury common for $14 per share.
e. Sold 30,000 shares of treasury common for $8 per share.
f. Declared cash dividends of $1.25 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter.
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