Question
In: Accounting
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
| Preferred 2% Stock, $100 par (60,000 shares authorized, 30,000 shares issued) | $3,000,000 |
| Paid-In Capital in Excess of Par—Preferred Stock | 600,000 |
| Common Stock, $25 par (600,000 shares authorized, 220,000 shares issued) | 5,500,000 |
| Paid-In Capital in Excess of Par—Common Stock | 720,000 |
| Retained Earnings | 20,818,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 60,000 shares of common stock at $28, receiving cash.
- Issued 15,000 shares of preferred 2% stock at $120.
- Purchased 36,000 shares of treasury common for $26 per share.
- Sold 18,000 shares of treasury common for $29 per share.
- Sold 12,000 shares of treasury common for $24 per share.
- Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock.
- Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued 60,000 shares of common stock at $28, receiving cash.
b. Issued 15,000 shares of preferred 2% stock at $120.
c. Purchased 36,000 shares of treasury common for $26 per share..
d. Sold 18,000 shares of treasury common for $29 per share.
e. Sold 12,000 shares of treasury common for $24 per share.
f. Declared cash dividends of $2 per share on preferred stock and $0.06 per share on common stock.
g. Paid the cash dividends.
Solutions
Expert Solution
| a | ||||
| Cash | 1680000 | =60000*28 | ||
| Common Stock | 1500000 | =60000*25 | ||
| Paid-In Capital in Excess of Par-Common Stock | 180000 | |||
| b | ||||
| Cash | 1800000 | =15000*120 | ||
| Preferred Stock | 1500000 | =15000*100 | ||
| Paid-In Capital in Excess of Par-Preferred Stock | 300000 | |||
| c | ||||
| Treasury Stock | 936000 | =36000*26 | ||
| Cash | 936000 | |||
| d | ||||
| Cash | 522000 | =18000*29 | ||
| Treasury Stock | 468000 | =18000*26 | ||
| Paid-In Capital from Sale of Treasury Stock | 54000 | |||
| e | ||||
| Cash | 288000 | =12000*24 | ||
| Paid-In Capital from Sale of Treasury Stock | 24000 | |||
| Treasury Stock | 312000 | =12000*26 | ||
| f | ||||
| Cash Dividends | 106440 | =(30000+15000)*2+(220000+60000-36000+18000+12000)*0.06 | ||
| Cash Dividends Payable | 106440 | |||
| g | ||||
| Cash Dividends Payable | 106440 | |||
| Cash | 106440 | |||
ekkarill92 answered 6 months agoRelated Solutions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
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Paid-In Capital in Excess of Par—Preferred Stock
165,220
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5,070,000
Paid-In Capital in Excess of Par—Common Stock
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During the year, the corporation completed a number of
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Preferred 1% Stock, $50 par
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Paid-In Capital in Excess of
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159,200
Common Stock, $3 par (5,000,000
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Paid-In Capital in Excess of
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Retained Earnings
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During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as follows:...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 1% Stock, $50 par
(100,000 shares authorized, 79,600 shares issued)
$3,980,000
Paid-In Capital in Excess of
Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000
shares authorized, 1,870,000 shares issued)
5,610,000
Paid-In Capital in Excess of
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1,215,500
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Construction Inc. at the beginning of the current year:
Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600
shares issued)
$3,980,000
Paid-In Capital in Excess of Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000 shares authorized, 1,870,000
shares issued)
5,610,000
Paid-In Capital in Excess of Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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transactions affecting the stockholders’ equity. They are
summarized as follows:...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
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
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Construction Inc. at the beginning of the current fiscal year:
Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100
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$3,755,000
Paid-In Capital in Excess of Par—Preferred Stock
165,220
Common Stock, $3 par (5,000,000 shares authorized, 1,690,000
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5,070,000
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Common Stock, $8 par (5,000,000 shares authorized, 3,000,000
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Paid-In Capital in Excess of Par—Common Stock 1,850,000
Retained Earnings 115,400,000
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