Question
In: Accounting
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, 75,100 shares issued) | $3,755,000 |
| Paid-In Capital in Excess of Par—Preferred Stock | 165,220 |
| Common Stock, $3 par (5,000,000 shares authorized, 1,690,000 shares issued) | 5,070,000 |
| Paid-In Capital in Excess of Par—Common Stock | 1,014,000 |
| Retained Earnings | 30,836,000 |
During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:
| a. | Issued 454,700 shares of common stock at $8, receiving cash. |
| b. | Issued 11,800 shares of preferred 1% stock at $61. |
| c. | Purchased 46,500 shares of treasury common for $8 per share. |
| d. | Sold 20,700 shares of treasury common for $10 per share. |
| e. | Sold 5,700 shares of treasury common for $7 per share. |
| f. | Declared cash dividends of $0.50 per share on preferred stock and $0.10 per share on common stock. |
| g. | Paid the cash dividends. |
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Solutions
Expert Solution
| Journal entries | ||||||
| S.no. | Accounts title and explanations | Debit $ | Credit $ | |||
| a. | Cash account | 3637600.00 | ||||
| Common stock capital | 1364100.00 | |||||
| Paid in capital in excess of parCommon | 2273500.00 | |||||
| (for issuance of stock) | ||||||
| b. | Cash account (11800*61) | 719800.00 | ||||
| Preferred stock capital (11800*50) | 590000.00 | |||||
| Paid in capital in excess of par-Preferred | 129800.00 | |||||
| (for issuance of preferred stock) | ||||||
| c.. | Treasury stock (46500*8) | 372000.00 | ||||
| Cash account | 372000.00 | |||||
| (for treasury stock purchased) | ||||||
| d. | Cash account (20700*10) | 207000.00 | ||||
| Treasury stock (20700*8) | 165600.00 | |||||
| Paid in capital-Treasury stock | 41400.00 | |||||
| (for resale of treasury stock) | ||||||
| e. | Cash account (5700*7) | 39900.00 | ||||
| Paid in capital-treasury stock | 5700.00 | |||||
| Treasury stock (5700*8) | 45600.00 | |||||
| f. | Dividend account | 255910.00 | ||||
| Preferred dividend payable (75100+11800 *0.50) | 43450.00 | |||||
| Common Dividend payable (1690,000+454,700-46500+20700+5700)*0.10 | 212460.00 | |||||
| (for dividend decalred) | ||||||
| g. | Preferred dividend payable | 43450.00 | ||||
| Common dividend payable | 212460.00 | |||||
| Cash account | 255910.00 | |||||
| (for dividend payable) | ||||||
ekkarill92 answered 3 years agoRelated Solutions
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:...
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 fiscal 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...
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, 79,600 shares issued)
$3,980,000
Paid-In Capital in Excess of
Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000
shares authorized, 1,870,000 shares issued)
5,610,000
Paid-In Capital in Excess of
Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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, 79,600 shares issued)
$3,980,000
Paid-In Capital in Excess of
Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000
shares authorized, 1,870,000 shares issued)
5,610,000
Paid-In Capital in Excess of
Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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, 79,600
shares issued)
$3,980,000
Paid-In Capital in Excess of Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000 shares authorized, 1,870,000
shares issued)
5,610,000
Paid-In Capital in Excess of Par—Common Stock
1,215,500
Retained Earnings
31,497,000
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 2% Stock, $100 par (100,000 shares authorized, 80,000
shares issued)
$8,000,000
Paid-In Capital in Excess of Par—Preferred Stock
440,000
Common Stock, $5 par (5,000,000 shares authorized, 4,000,000
shares issued)
20,000,000
Paid-In Capital in Excess of Par—Common Stock
2,280,000
Retained Earnings
115,400,000
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 fiscal year:
Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100
shares issued)
$3,755,000
Paid-In Capital in Excess of Par—Preferred Stock
165,220
Common Stock, $3 par (5,000,000 shares authorized, 1,690,000
shares issued)
5,070,000
Paid-In Capital in Excess of Par—Common Stock
1,014,000
Retained Earnings
30,836,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as...
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 fiscal year:
Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000
shares issued) $6,000,000
Paid-In Capital in Excess of Par—Preferred Stock 420,000
Common Stock, $8 par (5,000,000 shares authorized, 3,000,000
shares issued) 24,000,000
Paid-In Capital in Excess of Par—Common Stock 1,850,000
Retained Earnings 115,400,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as...
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 2% Stock, $50 par (50,000 shares authorized, 25,000
shares issued)
$1,250,000
Paid-In Capital in Excess of Par—Preferred Stock
250,000
Common Stock, $20 par (700,000 shares authorized, 210,000
shares issued)
4,200,000
Paid-In Capital in Excess of Par—Common Stock
550,000
Retained Earnings
13,250,000
During the year, the corporation completed a number of
transactions affecting the stockholders' equity. They are
summarized as follows:...
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