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 (40,000 shares authorized, 20,000 shares issued) | $4,000,000 |
| Paid-In Capital in Excess of Par—Preferred Stock | 640,000 |
| Common Stock, $15 par (700,000 shares authorized, 320,000 shares issued) | 4,800,000 |
| Paid-In Capital in Excess of Par—Common Stock | 620,000 |
| Retained Earnings | 21,327,000 |
-
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 $22, receiving cash.
- Issued 10,000 shares of preferred 2% stock at $218.
- Purchased 42,000 shares of treasury common for $20 per share.
- Sold 21,000 shares of treasury common for $23 per share.
- Sold 14,000 shares of treasury common for $18 per share.
- Declared cash dividends of $4.00 per share on preferred stock and $0.08 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 70,000 shares of common stock at $22, receiving cash.
b. Issued 10,000 shares of preferred 2% stock at $218.
c. Purchased 42,000 shares of treasury common for $20 per share..
d. Sold 21,000 shares of treasury common for $23 per share.
e. Sold 14,000 shares of treasury common for $18 per share.
f. Declared cash dividends of $4 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Solutions
Expert Solution
| a | |||
| Cash | 1540000 | =70000*22 | |
| Common Stock | 1050000 | =70000*15 | |
| Paid in Capital in excess of par-Common Stock | 490000 | ||
| b | |||
| Cash | 2180000 | =10000*218 | |
| Preferred Stock | 2000000 | =10000*200 | |
| Paid in Capital in excess of par-Preferred Stock | 180000 | ||
| c | |||
| Treasury Stock | 840000 | =42000*20 | |
| Cash | 840000 | ||
| d | |||
| Cash | 483000 | =21000*23 | |
| Treasury Stock | 420000 | =21000*20 | |
| Paid in Capital from sale of Treasury Stock | 63000 | ||
| e | |||
| Cash | 252000 | =14000*18 | |
| Paid in Capital from sale of Treasury Stock | 28000 | ||
| Treasury Stock | 280000 | =14000*20 | |
| f | |||
| Cash dividends | 150640 | ||
| Cash dividends payable | 150640 | ||
| g | |||
| Cash dividends payable | 150640 | ||
| Cash | 150640 | ||
| Workings: | |||
| Preferred Stock outstanding | 30000 | =20000+10000 | |
| X Dividends per share | 4 | ||
| Dividends on Preferred Stock | 120000 | ||
| Common Stock outstanding | 383000 | =320000+70000-42000+21000+14000 | |
| X Dividends per share | 0.08 | ||
| Dividends on Common Stock | 30640 | ||
| Cash dividends | 150640 | =120000+30640 |
ekkarill92 answered 1 year agoRelated Solutions
Selected Stock Transactions The following selected accounts appear in the ledger of Parks Construction Inc. at...
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Preferred 2% Stock, $150 par (70,000 shares authorized, 35,000
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Paid-In Capital in Excess of Par—Preferred Stock
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Preferred 2% Stock, $200 par (50,000 shares authorized, 25,000
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Paid-In Capital in Excess of Par—Preferred Stock
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Paid-In Capital in Excess of Par—Common Stock
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Retained Earnings
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Preferred 2% Stock, $175 par (60,000 shares authorized, 30,000
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Paid-In Capital in Excess of Par—Preferred Stock
1,050,000
Common Stock, $25 par (500,000 shares authorized, 330,000
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8,250,000
Paid-In Capital in Excess of Par—Common Stock
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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
960,000
Common Stock, $15 par (800,000 shares authorized, 330,000
shares issued)
4,950,000
Paid-In Capital in Excess of Par—Common Stock
640,000
Retained Earnings
26,606,000
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, $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...
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
Common Stock, $20 par (700,000 shares authorized, 320,000
shares issued)
6,400,000
Paid-In Capital in Excess of Par—Common Stock
830,000
Retained Earnings
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Preferred 2% Stock, $200 par (30,000 shares authorized, 15,000
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$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
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Preferred 2% Stock, $75 par (40,000 shares authorized, 20,000
shares issued)
$1,500,000
Paid-In Capital in Excess of Par—Preferred Stock
300,000
Common Stock, $25 par (700,000 shares authorized, 320,000
shares issued)
8,000,000
Paid-In Capital in Excess of Par—Common Stock
1,040,000
Retained Earnings
22,981,000
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Preferred 1% Stock, $50 par
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$4,195,000
Paid-In Capital in Excess of
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184,580
Common Stock, $3 par (5,000,000
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6,360,000
Paid-In Capital in Excess of
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Retained Earnings
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Paid-In Capital in Excess of Par—Preferred Stock
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Common Stock, $3 par (5,000,000 shares authorized, 1,780,000
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