Question

Selected Stock Transactions

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Preferred 2% Stock, $100 par (40,000 shares authorized, 20,000 shares issued)$2,000,000

Paid-In Capital in Excess of Par—Preferred Stock240,000

Common Stock, $25 par (700,000 shares authorized, 210,000 shares issued)5,250,000

Paid-In Capital in Excess of Par—Common Stock680,000

Retained Earnings17,320,000

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

Purchased 42,000 shares of treasury common for $26 per share.

Sold 21,000 shares of treasury common for $29 per share.

Issued 10,000 shares of preferred 2% stock at $116.

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

Sold 14,000 shares of treasury common for $24 per share.

Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock.

Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

If an amount box does not require an entry, leave it blank.

a.

b.

c.

d.

e.

f.

g.

Answer 1