In: Accounting
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.
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JOURNAL
ACCOUNTING EQUATION
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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 |