Question
In: Accounting
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
| Preferred 2% Stock, $200 par (50,000 shares authorized, 25,000 shares issued) | $5,000,000 |
| Paid-In Capital in Excess of Par—Preferred Stock | 1,000,000 |
| Common Stock, $10 par (500,000 shares authorized, 260,000 shares issued) | 2,600,000 |
| Paid-In Capital in Excess of Par—Common Stock | 340,000 |
| Retained Earnings | 18,953,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
Issued 50,000 shares of common stock at $14, receiving cash.
Issued 13,000 shares of preferred 2% stock at $217.
Purchased 30,000 shares of treasury common for $12 per share.
Sold 15,000 shares of treasury common for $15 per share.
Sold 10,000 shares of treasury common for $10 per share.
Declared cash dividends of $4.00 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 50,000 shares of common stock at $14, receiving cash.
b. Issued 13,000 shares of preferred 2% stock at $217.
c. Purchased 30,000 shares of treasury common for $12 per share.
d. Sold 15,000 shares of treasury common for $15 per share.
e. Sold 10,000 shares of treasury common for $10 per share.
f. Declared cash dividends of $4.00 per share on preferred stock and $0.10 per share on common stock.
g. Paid the cash dividends.
Solutions
Expert Solution
Journal entries :
| No | Account and explanation | debit | credit |
| a | Cash (50000*14) | 700000 | |
| Common Stock (50000*10) | 500000 | ||
| Paid in capital in excess of par value-Common Stock | 200000 | ||
| (To record issue common Stock) | |||
| b | Cash (13000*217) | 2821000 | |
| Preferred stock (13000*200) | 2600000 | ||
| Paid in capital in excess of par value-Preferred stock | 221000 | ||
| (To record issue preferred stock) | |||
| c | Treasury stock (30000*12) | 360000 | |
| Cash | 360000 | ||
| (To record purchase treasury Stock) | |||
| d | Cash (15000*15) | 225000 | |
| Treasury stock (15000*12) | 180000 | ||
| Paid in capital from sale of treasury stock | 45000 | ||
| (To record reissue treasury stock) | |||
| e | Cash (10000*10) | 100000 | |
| Paid in capital from sale of treasury stock | 20000 | ||
| Treasury stock (10000*12) | 120000 | ||
| (TO record sale of treasury stock) | |||
| f | Cash dividend (38000*4+305000*.10) | 182500 | |
| Dividend payable | 182500 | ||
| (To record cash dividend declared) | |||
| g | Dividend payable | 182500 | |
| Cash | 182500 | ||
| (To record dividend paid) |
ekkarill92 answered 1 year agoRelated Solutions
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
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Paid-In Capital in Excess of Par—Preferred Stock
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Preferred 2% Stock, $175 par (60,000 shares authorized, 30,000
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Selected Stock Transactions
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $150 par (80,000 shares authorized, 40,000
shares issued)
$6,000,000
Paid-In Capital in Excess of Par—Preferred Stock
960,000
Common Stock, $15 par (800,000 shares authorized, 330,000
shares issued)
4,950,000
Paid-In Capital in Excess of Par—Common Stock
640,000
Retained Earnings
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During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are...
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $175 par (60,000 shares authorized, 30,000
shares issued)
$5,250,000
Paid-In Capital in Excess of Par—Preferred Stock
1,050,000
Common Stock, $25 par (700,000 shares authorized, 250,000
shares issued)
6,250,000
Paid-In Capital in Excess of Par—Common Stock
810,000
Retained Earnings
28,323,000
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are...
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $150 par (80,000 shares authorized, 40,000
shares issued)
$6,000,000
Paid-In Capital in Excess of Par—Preferred Stock
720,000
Common Stock, $20 par (700,000 shares authorized, 320,000
shares issued)
6,400,000
Paid-In Capital in Excess of Par—Common Stock
830,000
Retained Earnings
29,574,000
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are...
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $200 par (30,000 shares authorized, 15,000
shares issued)
$3,000,000
Paid-In Capital in Excess of Par—Preferred Stock
480,000
Common Stock, $15 par (800,000 shares authorized, 270,000
shares issued)
4,050,000
Paid-In Capital in Excess of Par—Common Stock
530,000
Retained Earnings
17,087,000
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transactions affecting the stockholders' equity. They are...
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
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Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $200 par (40,000 shares authorized, 20,000
shares issued)
$4,000,000
Paid-In Capital in Excess of Par—Preferred Stock
640,000
Common Stock, $15 par (700,000 shares authorized, 320,000
shares issued)
4,800,000
Paid-In Capital in Excess of Par—Common Stock
620,000
Retained Earnings
21,327,000
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are...
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks
Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $75 par (40,000 shares authorized, 20,000
shares issued)
$1,500,000
Paid-In Capital in Excess of Par—Preferred Stock
300,000
Common Stock, $25 par (700,000 shares authorized, 320,000
shares issued)
8,000,000
Paid-In Capital in Excess of Par—Common Stock
1,040,000
Retained Earnings
22,981,000
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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
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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
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transactions affecting the stockholders’ equity. They are
summarized as follows:...
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Preferred 1% Stock, $50 par (100,000 shares authorized, 81,900
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Paid-In Capital in Excess of Par—Preferred Stock
155,610
Common Stock, $3 par (5,000,000 shares authorized, 1,780,000
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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:...
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