Question

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication Corporation on July 1, 2014, the beginning of the current fiscal year:
Preferred 2% Stock, $80 par (100,000 shares authorized,
60,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,800,000
Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . 210,000
Common Stock, $9 par (3,000,000 shares authorized,
1,750,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,750,000
Paid-In Capital in Excess of Par—Common Stock . . . . . . . . 1,400,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,840,000
During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:
a. Purchased 87,500 shares of treasury common for $8 per share.
b. Sold 55,000 shares of treasury common for $11 per share.
c. Issued 20,000 shares of preferred 2% stock at $84.
d. Issued 400,000 shares of common stock at $13, receiving cash.
e. Sold 18,000 shares of treasury common for $7.50 per share.
f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 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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  • CreatedFebruary 28, 2014
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