In: Accounting
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 summarized as follows:
Issued 70,000 shares of common stock at $32, receiving cash.
Issued 15,000 shares of preferred 2% stock at $193.
Purchased 42,000 shares of treasury common for $30 per share.
Sold 21,000 shares of treasury common for $33 per share.
Sold 14,000 shares of treasury common for $28 per share.
Declared cash dividends of $3.50 per share on preferred stock and $0.06 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 70,000 shares of common stock at $32, receiving cash.
b. Issued 15,000 shares of preferred 2% stock at $193.
c. Purchased 42,000 shares of treasury common for $30 per share.
d. Sold 21,000 shares of treasury common for $33 per share.
e. Sold 14,000 shares of treasury common for $28 per share.
f. Declared cash dividends of $3.50 per share on preferred stock and $0.06 per share on common stock.
g. Paid the cash dividends.
a | Cash | 2240000 | =70000*32 | |
Common Stock | 1750000 | =70000*25 | ||
Paid-In Capital in Excess of Par-Common Stock | 490000 | |||
b | Cash | 2895000 | =15000*193 | |
Preferred Stock | 2625000 | =15000*175 | ||
Paid-In Capital in Excess of Par-Preferred Stock | 270000 | |||
c | Treasury Stock | 1260000 | =42000*30 | |
Cash | 1260000 | |||
d | Cash | 693000 | =21000*33 | |
Treasury Stock | 630000 | =21000*30 | ||
Paid-In Capital from Sale of Treasury Stock | 63000 | |||
e | Cash | 392000 | =14000*28 | |
Paid-In Capital from Sale of Treasury Stock | 28000 | |||
Treasury Stock | 420000 | =14000*30 | ||
f | Cash Dividends | 176280 | =(30000+15000)*3.5+(250000+70000-42000+21000+14000)*0.06 | |
Cash Dividends Payable | 176280 | |||
g | Cash Dividends Payable | 176280 | ||
Cash | 176280 | |||