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 (50,000 shares authorized, 25,000 shares issued) | $2,500,000 |
| Paid-In Capital in Excess of Par—Preferred Stock | 400,000 |
| Common Stock, $15 par (800,000 shares authorized, 290,000 shares issued) | 4,350,000 |
| Paid-In Capital in Excess of Par—Common Stock | 570,000 |
| Retained Earnings | 16,578,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 80,000 shares of common stock at $21, receiving cash.
- Issued 13,000 shares of preferred 2% stock at $116.
- Purchased 48,000 shares of treasury common for $20 per share.
- Sold 24,000 shares of treasury common for $23 per share.
- Sold 16,000 shares of treasury common for $18 per share.
- Declared cash dividends of $2.00 per share on preferred stock and $0.10 per share on common stock.
- Paid the cash dividends.
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Required:
a. Issued 80,000 shares of common stock at $21, receiving cash.
| Cash | |||
| Common Stock | |||
| Paid-In Capital in Excess of Par-Common Stock |
b. Issued 13,000 shares of preferred 2% stock at $116.
| Cash | |||
| Preferred Stock | |||
| Paid-In Capital in Excess of Par-Preferred Stock |
c. Purchased 48,000 shares of treasury common for $20 per share.
| Treasury Stock | |||
| Cash |
d. Sold 24,000 shares of treasury common for $23 per share.
| Cash | |||
| Treasury Stock | |||
| Paid-In Capital from Sale of Treasury Stock |
e. Sold 16,000 shares of treasury common for $18 per share.
| Cash | |||
| Paid-In Capital from Sale of Treasury Stock | |||
| Treasury Stock |
f. Declared cash dividends of $2.00 per share on preferred stock and $0.10 per share on common stock.
| Cash Dividends | |||
| Cash Dividends Payable |
g. Paid the cash dividends.
| Cash Dividends Payable | |||
| Cash |
Solutions
Expert Solution
| TR | Account titles & Explanations | Debit | Credit | |||||
| a) | Cash | (80000*21) | 1680000 | |||||
| Common stock | (80000*15) | 1200000 | ||||||
| paid in capital in excess of par -CS | 480000 | |||||||
| b) | Cash | (13000*116) | 1508000 | |||||
| Preferred Stock | 1300000 | |||||||
| Paid in capital in excess of par-PS | 208000 | |||||||
| c) | Treasusry stock | (48000*20) | 960000 | |||||
| cash | 960,000 | |||||||
| d) | cash | (24000*23) | 552000 | |||||
| Treasury stock | (24000*20) | 480000 | ||||||
| paid in capital from sale of Treasury stock | 72000 | |||||||
| e) | Cash | (16000*18) | 288000 | |||||
| paid in capital from sale of Treasury stock | 32000 | |||||||
| Treasury stock | (16000*20) | 320000 | ||||||
| f) | Cash dividends | 112200 | ||||||
| Dividends payable | 112,200 | |||||||
| (38000*2+362000*.1) | ||||||||
| g) | Dividends payable | 112,200 | ||||||
| cash | 112,200 | |||||||
ekkarill92 answered 2 weeks agoRelated Solutions
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, 83,900 shares issued)
$4,195,000
Paid-In Capital in Excess of
Par—Preferred Stock
184,580
Common Stock, $3 par (5,000,000
shares authorized, 2,120,000 shares issued)
6,360,000
Paid-In Capital in Excess of
Par—Common Stock
1,590,000
Retained Earnings
31,692,000
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, 81,900
shares issued)
$4,095,000
Paid-In Capital in Excess of Par—Preferred Stock
155,610
Common Stock, $3 par (5,000,000 shares authorized, 1,780,000
shares issued)
5,340,000
Paid-In Capital in Excess of Par—Common Stock
1,602,000
Retained Earnings
35,256,000
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 fiscal year:
Preferred 1% Stock, $50 par
(100,000 shares authorized, 83,900 shares issued)
$4,195,000
Paid-In Capital in Excess of
Par—Preferred Stock
184,580
Common Stock, $3 par (5,000,000
shares authorized, 2,120,000 shares issued)
6,360,000
Paid-In Capital in Excess of
Par—Common Stock
1,590,000
Retained Earnings
31,692,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as...
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, 75,100
shares issued)
$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
shares issued)
5,070,000
Paid-In Capital in Excess of Par—Common Stock
1,014,000
Retained Earnings
30,836,000
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
Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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
Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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 Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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 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:...
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 fiscal year:
Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100
shares issued)
$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
shares issued)
5,070,000
Paid-In Capital in Excess of Par—Common Stock
1,014,000
Retained Earnings
30,836,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as...
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 fiscal year:
Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000
shares issued) $6,000,000
Paid-In Capital in Excess of Par—Preferred Stock 420,000
Common Stock, $8 par (5,000,000 shares authorized, 3,000,000
shares issued) 24,000,000
Paid-In Capital in Excess of Par—Common Stock 1,850,000
Retained Earnings 115,400,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How does technology effect businesses? With technology constantly changing, how should business leaders respond to the...
- This is one problem. To clarify its one problem that has 2 different questions. My teacher...
- Consider the make-or-buy decision. Give three examples of situations which a business should make rather than...
- Pedro and Joanna decide to try a problem. A baseball is thrown from the top of...
- Soundex produces x Model A radios and y Model B radios. Model A requires 15 min...
- what is the different sentencing models used to determine the length of sentence for convicted felon?...
- Why would a firm research the marketing infrastructure of a foreign market prior to entry? a....
ADVERTISEMENT