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 2 years agoRelated Solutions
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 (70,000 shares authorized, 35,000
shares issued)
$5,250,000
Paid-In Capital in Excess of Par—Preferred Stock
840,000
Common Stock, $10 par (700,000 shares authorized, 330,000
shares issued)
3,300,000
Paid-In Capital in Excess of Par—Common Stock
430,000
Retained Earnings
20,818,000
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, $200 par (50,000 shares authorized, 25,000
shares issued)
$5,000,000
Paid-In Capital in Excess of Par—Preferred Stock
1,000,000
Common Stock, $10 par (500,000 shares authorized, 260,000
shares issued)
2,600,000
Paid-In Capital in Excess of Par—Common Stock
340,000
Retained Earnings
18,953,000
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 (500,000 shares authorized, 330,000
shares issued)
8,250,000
Paid-In Capital in Excess of Par—Common Stock
1,070,000
Retained Earnings
33,114,000
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
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
29,574,000
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, $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...
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, $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
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are...
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 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:...
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 year:
Preferred 1% Stock, $50 par (100,000 shares authorized, 81,900
shares issued)
$4,095,000
Paid-In Capital in Excess of Par—Preferred Stock
155,610
Common Stock, $3 par (5,000,000 shares authorized, 1,780,000
shares issued)
5,340,000
Paid-In Capital in Excess of Par—Common Stock
1,602,000
Retained Earnings
35,256,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as follows:...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The correlation between X and Y ______________. Question options: measures the variation around the predicted regression...
- Will iron(III) hydroxide precipitate from a pH = 1.00 solution with [Fe3+] = 1.0 x 10-5?...
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
ADVERTISEMENT