Question

Following selected accounts appear in the ledger of parks construction incorporated at the beginning of the Current year, preferred 2% stock a $100 par there was a $100000 shares authorized and 80000 shares issued of 8 million dollars paid in capital in excess of power for preferred stock $440000, Common stock at $5 par 500000 shares all the rise to 400000 shares issued at 20 million dollars paid in capital in excess of par common stock at 2 million 280000 dollars retained earnings of a 115 million 400000 dollars during the year the corporation completed number of transactions affecting the stockholders equity they are summarized as follows part a issued 200000 shares of common stock at $12 receiving cash part be issued 8000 shares of preferred 2% stock at a $115 part C purchased a 175000 shares of Treasury common for $10 per share part D sold a 110000 shares of Treasury common for $14 per share part E sold 30000 shares of Treasury common for $8 per share part F declared cash dividends of $1.25 per share on preferred stock and 8 cents per share on common stock and part G paid the cash dividends journalize the entries to record the transactions

Answer 1

		Debit	Credit
a	Cash	2,400,000.00
	Common Stock		1,000,000.00
	Paid in Capital in Excess of Par-Common Stock		1,400,000.00
b	Cash	920,000.00
	Preferred Stock		800,000.00
	Paid in Capital in Excess of Par-Preferred Stock		120,000.00
c	Treasury Stock	1,750,000.00
	Cash		1,750,000.00
d	Cash	1,540,000.00
	Treasury Stock		1,100,000.00
	Paid in Capital from Sale of Treasury Stock		440,000.00
e	Cash	240,000.00
	Paid in Capital from Sale of Treasury Stock	60,000.00
	Treasury Stock		300,000.00
f	Cash Dividends	158,000.00
	Cash Dividends Payable		158,000.00
g	Cash Dividends Payable	158,000.00
	Cash		158,000.00