Question

The following selected accounts appear in the ledger of Orion Inc. on February 1, 2014, the beginning of the current fiscal year:
Preferred 1% Stock, $40 par (75,000 shares authorized,
45,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,800,000
Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . . . . 72,000
Common Stock, $12 par (2,000,000 shares authorized,
1,250,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000
Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . . . . . . 3,750,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,450,000
During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:
a. Issued 360,000 shares of common stock at $22, receiving cash.
b. Issued 14,000 shares of preferred 1% stock at $43.
c. Purchased 66,000 shares of treasury common for $18 per share.
d. Sold 51,000 shares of treasury common for $21 per share.
e. Sold 10,000 shares of treasury common for $16 per share.
f. Declared cash dividends of $0.40 per share on preferred stock and $0.03 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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