The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the
Question:
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—Preferred Stock 440,000
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 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. |
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler