Problem #2 Selected stock transactions The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) $  4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 175,000 Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued) 6,000,000 Paid-In Capital in Excess of Par—Common Stock 1,500,000 Retained Earnings 32,350,000   During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: a. Issued 500,000 shares of common stock at $8, receiving cash b. Issued 10,000 shares of preferred 1% stock at $60. c. Purchased 50,000 shares of treasury common for $7 per share. d. Sold 20,000 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.

Question

Problem #2 Selected stock transactions

The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current year:

Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued)

$  4,000,000

Paid-In Capital in Excess of Par—Preferred Stock

175,000

Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued)

6,000,000

Paid-In Capital in Excess of Par—Common Stock

1,500,000

Retained Earnings

32,350,000

 

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

a. Issued 500,000 shares of common stock at $8, receiving cash
b. Issued 10,000 shares of preferred 1% stock at $60.
c. Purchased 50,000 shares of treasury common for $7 per share.
d. Sold 20,000 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.

 

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