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 (80,000 shares authorized, 40,000 shares issued) $4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 800,000 Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued) 1,900,000 Paid-In Capital in Excess of Par—Common Stock 250,000 Retained Earnings 14,734,000 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 $13 per share. Sold 21,000 shares of treasury common for $16 per share. Issued 20,000 shares of preferred 2% stock at $116. Issued 70,000 shares of common stock at $17, receiving cash. Sold 14,000 shares of treasury common for $11 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. Treasury Stock Treasury Stock Cash Cash b. Cash Cash Treasury Stock Treasury Stock Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock c. Cash Cash Preferred Stock Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock d. Cash Cash Common Stock Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Common Stock e. Cash Cash Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock Treasury Stock Treasury Stock f. Cash Dividends Cash Dividends Cash Dividends Payable Cash Dividends Payable g. Cash Dividends Payable Cash Dividends Payable Cash Cash
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 (80,000 shares authorized, 40,000 shares issued) $4,000,000 Paid-In Capital in Excess of Par—Preferred Stock 800,000 Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued) 1,900,000 Paid-In Capital in Excess of Par—Common Stock 250,000 Retained Earnings 14,734,000 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 $13 per share. Sold 21,000 shares of treasury common for $16 per share. Issued 20,000 shares of preferred 2% stock at $116. Issued 70,000 shares of common stock at $17, receiving cash. Sold 14,000 shares of treasury common for $11 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. Treasury Stock Treasury Stock Cash Cash b. Cash Cash Treasury Stock Treasury Stock Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock c. Cash Cash Preferred Stock Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock d. Cash Cash Common Stock Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Common Stock e. Cash Cash Paid-In Capital from Sale of Treasury Stock Paid-In Capital from Sale of Treasury Stock Treasury Stock Treasury Stock f. Cash Dividends Cash Dividends Cash Dividends Payable Cash Dividends Payable g. Cash Dividends Payable Cash Dividends Payable Cash Cash
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: Selected stock transactions The following selected accounts appear in the ledger of Parks...
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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 (80,000 shares authorized, 40,000 shares issued) | $4,000,000 |
Paid-In Capital in Excess of Par— |
800,000 |
Common Stock, $10 par (700,000 shares authorized, 190,000 shares issued) | 1,900,000 |
Paid-In Capital in Excess of Par—Common Stock | 250,000 |
14,734,000 |
During the year, the corporation completed a number of transactions affecting the
- Purchased 42,000 shares of treasury common for $13 per share.
- Sold 21,000 shares of treasury common for $16 per share.
- Issued 20,000 shares of preferred 2% stock at $116.
- Issued 70,000 shares of common stock at $17, receiving cash.
- Sold 14,000 shares of treasury common for $11 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:
If an amount box does not require an entry, leave it blank.
a. |
|
Treasury Stock | |
|
Cash | Cash | |
b. |
|
Cash | Cash |
|
Treasury Stock | Treasury Stock | |
|
Paid-In Capital from Sale of Treasury Stock | Paid-In Capital from Sale of Treasury Stock | |
c. |
|
Cash | Cash |
|
Preferred Stock | Preferred Stock | |
|
Paid-In Capital in Excess of Par-Preferred Stock | Paid-In Capital in Excess of Par-Preferred Stock | |
d. |
|
Cash | Cash |
|
Common Stock | Common Stock | |
|
Paid-In Capital in Excess of Par-Common Stock | Paid-In Capital in Excess of Par-Common Stock | |
e. |
|
Cash | Cash |
|
Paid-In Capital from Sale of Treasury Stock | Paid-In Capital from Sale of Treasury Stock | |
|
Treasury Stock | Treasury Stock | |
f. |
|
Cash Dividends | Cash Dividends |
|
Cash Dividends Payable | Cash Dividends Payable | |
g. |
|
Cash Dividends Payable | Cash Dividends Payable |
|
Cash | Cash |
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