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PLEASE USE THE CHART PROVIDED The following selected accounts appear in the ledger of Parks Construction...

PLEASE USE THE CHART PROVIDED

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, 79,400 shares issued) $3,970,000
Paid-In Capital in Excess of Par—Preferred Stock 150,860
Common Stock, $3 par (5,000,000 shares authorized, 2,100,000 shares issued) 6,300,000
Paid-In Capital in Excess of Par—Common Stock 1,260,000
Retained Earnings 33,959,000

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:

a. Issued 518,800 shares of common stock at $7, receiving cash.
b. Issued 9,800 shares of preferred 1% stock at $61.
c. Purchased 48,300 shares of treasury common for $7 per share.
d. Sold 19,500 shares of treasury common for $9 per share.
e. Sold 5,000 shares of treasury common for $6 per share.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.

CHART OF ACCOUNTSParks Construction Inc.General Ledger

ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
193 Equipment
194 Accumulated Depreciation-Equipment
LIABILITIES
210 Accounts Payable
221 Notes Payable
226 Interest Payable
231 Cash Dividends Payable
241 Salaries Payable
261 Mortgage Note Payable
EQUITY
236 Stock Dividends Distributable
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
515 Credit Card Expense
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Selling Expenses
534 Rent Expense
535 Insurance Expense
536 Office Supplies Expense
537 Organizational Expenses
562 Depreciation Expense-Equipment
590 Miscellaneous Expense
710 Interest Expense

Journalize the entries to record the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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Solutions

Expert Solution

Date Account Titles Debit Credit Assets Liabilities Equity
a Cash $    3,631,600 I
      Common Stock $    1,556,400 I
      Paid in Capital in excess of par-common $    2,075,200 I
b Cash $        597,800 I
      Preferred Stock $        490,000 I
      Paid in Capital in excess of par-preferred $        107,800 I
c Treasury Stock $        338,100 D
       Cash $        338,100 D
d Cash $        175,500 I
      Treasury Stock $        136,500 I
      Paid in Capital from Sale of Treasury Stock $          39,000 I
e Cash $          30,000 I
Paid in Capital from Sale of Treasury Stock $            5,000 D
      Treasury Stock $          35,000 I
f Cash Dividend $        252,200 D
      Cash Dividend Payable $        252,200 I
g Cash Dividend Payable $        252,200 D
       Cash $        252,200 D

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