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 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:
| Jan. | 5 | Issued 532,900 shares of common stock at $9, receiving cash. |
| Feb. | 10 | Issued 11,000 shares of preferred 1% stock at $58. |
| Mar. | 19 | Purchased 45,400 shares of treasury common for $8 per share. |
| May | 16 | Sold 21,400 shares of treasury common for $10 per share. |
| Aug. | 25 | Sold 4,300 shares of treasury common for $7 per share. |
| Dec. | 6 | Declared cash dividends of $0.50 per share on preferred stock and $0.07 per share on common stock. |
| 31 | Paid the cash dividends. |
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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Solutions
Expert Solution
| S. No. | Date | Description | post ref | debit | Credit | assets | liabilities | equity |
| 1 | jan 5 . | Issue 532900 common stock @9 |
4796100 (532900x9) |
1598700 (532900x3) 3197400 (532900x6) |
Cash (dr) |
Common stock (cr) Paid in capital in excess of par - common stock (cr) |
||
| 2 . | Feb 10 | issued 11000 preferred 1% stock@58 | 638000 (11000x58) |
550000 (11000x50) 88000 (11000x8) |
Cash (dr) |
Preferred 1% stock (cr) Paid in capital in excess of par - preferred stock (cr) |
||
| 3. | Mar 19 | purchased 45400 treasury common @ 8 | 363200 | 363200 | cash (cr) | treasury stock (dr) | ||
| 4 | may 16 | sold 21400 treasury common @ 10 | 214000 |
171200 (21400x8) 42800 (21400x2) |
Cash (dr) |
Treasury stock (cr) Paid in capital - treasury (cr) |
||
| 5 | aug 25 | sold 4300 treasury common @ 7 |
30100(4300x7) 4300 (4300x1) |
34400 (4300x8) | cash (dr) |
Treasury stock (cr) Paid in capital - treasury (dr) |
||
| 6 | Dec 6 | dividend on preferred as well as common stock declared | 41424 (35924+5500) | 41424 | Dividend payable (cr) | Retained earnings (Dr) | ||
| 7 | Dec 31 | paid div. In cash | 41424 | 41424 | cash (cr) | dividend payable (dr) | ||
Note :-
Calculation of amount to be declared
On common stock (532900-45400+21400+4300)x0.07 = $35924
On preferred stock 11000x0.5 = $5500
ekkarill92 answered 2 years 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 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...
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, $50 par (50,000 shares authorized, 25,000
shares issued)
$1,250,000
Paid-In Capital in Excess of Par—Preferred Stock
250,000
Common Stock, $20 par (700,000 shares authorized, 210,000
shares issued)
4,200,000
Paid-In Capital in Excess of Par—Common Stock
550,000
Retained Earnings
13,250,000
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are
summarized as follows:...
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