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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 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 follows:

Jan. 5 Issued 467,700 shares of common stock at $9, receiving cash.
Feb. 10 Issued 10,700 shares of preferred 1% stock at $62.
Mar. 19 Purchased 53,000 shares of treasury stock for $6 per share.
May 16 Sold 20,000 shares of treasury stock for $8 per share.
Aug. 25 Sold 5,200 shares of treasury stock for $5 per share.
Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.10 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.

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Expert Solution

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Date account and explanation debit credit
Jan 5 Cash (467700*9) 4209300
Common Stock 1403100
paid in capital in excess of par value-Common Stock 2806200
(To record issue common Stock)
Feb 10 Cash (10700*62) 663400
Prefered stock 535000
Paid in capital in excess of par value-Preferred stock 128400
(To record issue preferred stock)
Mar 19 Treasury stock (53000*6) 318000
Cash 318000
(to record purchase treasury stock)
May 16 Cash (20000*8) 160000
Treasury stock 120000
paid in capital from sale of treasury stock 40000
(To record treasury stock reissued)
Aug 25 Cash (5200*5) 26000
paid in capital from sale of treasury stock 5200
Treasury Stock 31200
(To record sale of treasury stock)
Dec 6 Cash dividend 303290
Common Dividend payable (2559900*.10) 255990
Preferred dividend payable (94600*.50) 47300
(To record dividend declared)
Dec 31 Common Dividend payable 255990
Preferred dividend payable 47300
Cash 303290
(To record dividend paid)

ekkarill92 answered 1 year ago
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