Question

1. 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 summarized as follows:

   1. Issued 70,000 shares of common stock at $30, receiving cash.
   2. Issued 10,000 shares of preferred 2% stock at $94.
   3. Purchased 42,000 shares of treasury common for $30 per share.
   4. Sold 21,000 shares of treasury common for $33 per share.
   5. Sold 14,000 shares of treasury common for $28 per share.
   6. Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.
   7. Paid the cash dividends.

   Journalize the entries to record the transactions.

   For a compound transaction, if an amount box does not require an entry, leave it blank.

   Required:

   a. Issued 70,000 shares of common stock at $30, receiving cash.

   b. Issued 10,000 shares of preferred 2% stock at $94.

   c. Purchased 42,000 shares of treasury common for $30 per share.

   d. Sold 21,000 shares of treasury common for $33 per share.

   e. Sold 14,000 shares of treasury common for $28 per share.

   f. Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.

   g. Paid the cash dividends.

Answer 1