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 (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 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 80,000 shares of common stock at $18, receiving cash.
- Issued 8,000 shares of preferred 2% stock at $215.
- Purchased 48,000 shares of treasury common for $19 per share.
- Sold 24,000 shares of treasury common for $22 per share.
- Sold 16,000 shares of treasury common for $17 per share.
- Declared cash dividends of $4.00 per share on preferred stock and $0.04 per share on common stock.
- Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued 80,000 shares of common stock at $18, receiving cash.
b. Issued 8,000 shares of preferred 2% stock at $215.
c. Purchased 48,000 shares of treasury common for $19 per share..
d. Sold 24,000 shares of treasury common for $22 per share.
e. Sold 16,000 shares of treasury common for $17 per share.
f. Declared cash dividends of $4 per share on preferred stock and $0.04 per share on common stock.
g. Paid the cash dividends.
Solutions
Expert Solution
| Date | Account Details | Debit | Credit |
| A | Cash(80000*18) | 1440000 | |
| Common Stock(80000*15) | 1200000 | ||
| Additional paid in capital | 240000 | ||
| (To record issue of stock for cash) | |||
| B | Cash(8000*215) | 1720000 | |
| Common Stock(8000*200) | 1600000 | ||
| Additional paid in capital | 120000 | ||
| (To record issue of stock for cash) | |||
| C | Treasury Stock(48000*19) | 912000 | |
| Cash | 912000 | ||
| (To record purchase of treasury stock) | |||
| D | Cash(24000*22) | 528000 | |
| Treasury stock(24000*19) | 456000 | ||
| Retained earnings | 72000 | ||
| (To record sale of treasury shares) | |||
| E | Cash(16000*17) | 272000 | |
| Retained earnings | 32000 | ||
| Treasury stock(16000*19) | 304000 | ||
| (To record sale of treasury shares) | |||
| F | Dividend | 186880 | |
| Preferred dividend payable(38000*4) | 152000 | ||
| Common stock dividend payable(Note) | 34880 | ||
| (To record dividend declared) | |||
| G | Preferred dividend payable(38000*4) | 152000 | |
| Common stock dividend payable(Note) | 34880 | ||
| Cash | 186880 | ||
| (To record dividend paid) |
Note:
No. of shares = 800000
Issues = 80000
Treasury stock = 48000 - 24000 - 16000 = 8000
Shares entitled to dividend = 800000+80000-8000 = 872000
Dividend = 872000*0.04 = $34880
ekkarill92 answered 1 year agoRelated Solutions
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The following selected accounts appear in the ledger of Parks
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shares issued)
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Paid-In Capital in Excess of Par—Preferred Stock
960,000
Common Stock, $15 par (800,000 shares authorized, 330,000
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Paid-In Capital in Excess of Par—Common Stock
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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
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)
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Common Stock, $25 par (700,000 shares authorized, 250,000
shares issued)
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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, $150 par (80,000 shares authorized, 40,000
shares issued)
$6,000,000
Paid-In Capital in Excess of Par—Preferred Stock
720,000
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shares issued)
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Paid-In Capital in Excess of Par—Preferred Stock
640,000
Common Stock, $15 par (700,000 shares authorized, 320,000
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Paid-In Capital in Excess of Par—Common Stock
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Paid-In Capital in Excess of Par—Preferred Stock
300,000
Common Stock, $25 par (700,000 shares authorized, 320,000
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8,000,000
Paid-In Capital in Excess of Par—Common Stock
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Retained Earnings
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Common Stock, $3 par (5,000,000
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