Answered: ournalize each of the following…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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

Preferred 3% Stock, $80 par (100,000 shares authorized, 60,000 shares issued)	$5,200,000
Paid-In Capital in Excess of Par—Preferred Stock	230,000
Common Stock, $5 par (6,000,000 shares authorized, 3,150,000 shares issued)	15,250,000
Paid-In Capital in Excess of Par—Common Stock	1,400,000
Retained Earnings	52,480,000

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. Journalize each of the following transactions and identify each entry by letter:

Purchased 87,500 shares of treasury common for $10 per share.
Sold 55,000 shares of treasury common for $12 per share.
Issued 20,000 shares of preferred 3% stock at $83.
Issued 400,000 shares of common stock at $12, receiving cash.
Sold 18,000 shares of treasury common for $7.75 per share.
Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.
Paid the cash dividends.

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