Question

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Preferred 2% Stock, $150 par (90,000 shares authorized, 45,000 shares issued)	$6,750,000
Paid-In Capital in Excess of Par—Preferred Stock	1,080,000
Common Stock, $10 par (800,000 shares authorized, 300,000 shares issued)	3,000,000
Paid-In Capital in Excess of Par—Common Stock	390,000
Retained Earnings	23,786,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

1. Purchased 48,000 shares of treasury common for $13 per share.
2. Sold 24,000 shares of treasury common for $16 per share.
3. Issued 23,000 shares of preferred 2% stock at $165.
4. Issued 80,000 shares of common stock at $15, receiving cash.
5. Sold 16,000 shares of treasury common for $11 per share.
6. Declared cash dividends of $3.00 per share on preferred stock and $0.08 per share on common stock.
7. Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

If an amount box does not require an entry, leave it blank.

a.		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
b.		fill in the blank 8	fill in the blank 9
		fill in the blank 11	fill in the blank 12
		fill in the blank 14	fill in the blank 15
c.		fill in the blank 17	fill in the blank 18
		fill in the blank 20	fill in the blank 21
		fill in the blank 23	fill in the blank 24
d.		fill in the blank 26	fill in the blank 27
		fill in the blank 29	fill in the blank 30
		fill in the blank 32	fill in the blank 33
e.		fill in the blank 35	fill in the blank 36
		fill in the blank 38	fill in the blank 39
		fill in the blank 41	fill in the blank 42
f.		fill in the blank 44	fill in the blank 45
		fill in the blank 47	fill in the blank 48
g.		fill in the blank 50	fill in the blank 51
		fill in the blank 53	fill in the blank 54

Answer 1

Journal Entry- Diamondback
S. No	Account Tittle	Debit	Credit
a.	Treasury stock ( 48000*13)	$624,000.00
	Cash		$624,000.00
b.	Cash ( 24000Share X $16)	$384,000.00
	Treasury stock(24000X13)		$312,000.00
	Paid in Capitotal in excess of Par - Treasury Stock		$72,000.00
c.	Cash ( 23000hare X $165)	$3,795,000.00
	Paid in Capitotal in excess of Par - Preferred Stock		$345,000.00
	Preferred stock(23000X150)		$3,450,000.00
d.	Cash ( 80000 Share X $15)	$1,200,000.00
	Paid in Capitotal in excess of Par - Common Stock		$400,000.00
	Common stock(80000X10)		$800,000.00
e.	Cash ( 16000Share X $11)	$176,000.00
	Paid in Capitotal in excess of Par - Treasury Stock	$32,000.00
	Treasury stock(16000X13)		$208,000.00
f	Retained Earning	$233,760.00
	Dividend Payable (( 45000+23000)*3+ ( 300000-48000+24000+80000+16000)*0.08)		$233,760.00
g.	Dividend Payable	$233,760.00
	Cash		$233,760.00