Chapter 12, Problem 3PA

Selected stock transactions

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

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

1. a. Issued 200,000 shares of common stock at $12, receiving cash.
2. b. Issued 8,000 shares of preferred 2% stock at $115.
3. c. Purchased 175,000 shares of treasury common for $10 per share.
4. d. Sold 110,000 shares of treasury common for $14 per share.
5. e. Sold 30,000 shares of treasury common for $8 per share.
6. f. Declared cash dividends of $1.25 per share on preferred stock and $0.08 per share on common stock.
7. g. Paid the cash dividends.

Instructions

Journalize the entries to record the transactions. Identify each entry by letter.