The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year: Preferred 2% Stock, $80 par (200,000 shares authorized, 65,000 shares issued) $5,200,000 Paid-In Capital in Excess of Par—Preferred Stock 360,000 Common Stock, $12 par (3,000,000 shares authorized, 1,400,000 shares issued) 16,800,000 Paid-In Capital in Excess of Par—Common Stock 1,290,000 Retained Earnings 110,900,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 220,000 shares of common stock at $15, receiving cash. Feb. 10 Issued 6,000 shares of preferred 2% stock at $94. Mar. 19 Purchased 130,000 shares of treasury common for $19 per share. May 16 Sold 70,000 shares of treasury common for $23 per share. Aug. 25 Sold 40,000 shares of treasury common for $17 per share. Dec. 6 Declared cash dividends of $1.60 per share on preferred stock and $0.14 per share on common stock. 31 Paid the cash dividends. Required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year: Preferred 2% Stock, $80 par (200,000 shares authorized, 65,000 shares issued) $5,200,000 Paid-In Capital in Excess of Par—Preferred Stock 360,000 Common Stock, $12 par (3,000,000 shares authorized, 1,400,000 shares issued) 16,800,000 Paid-In Capital in Excess of Par—Common Stock 1,290,000 Retained Earnings 110,900,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 220,000 shares of common stock at $15, receiving cash. Feb. 10 Issued 6,000 shares of preferred 2% stock at $94. Mar. 19 Purchased 130,000 shares of treasury common for $19 per share. May 16 Sold 70,000 shares of treasury common for $23 per share. Aug. 25 Sold 40,000 shares of treasury common for $17 per share. Dec. 6 Declared cash dividends of $1.60 per share on preferred stock and $0.14 per share on common stock. 31 Paid the cash dividends. Required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year: Preferred 2% Stock, $80 par (200,000 shares authorized, 65,000 shares issued) $5,200,000 Paid-In Capital in Excess of Par—Preferred Stock 360,000 Common Stock, $12 par (3,000,000 shares authorized, 1,400,000 shares issued) 16,800,000 Paid-In Capital in Excess of Par—Common Stock 1,290,000 Retained Earnings 110,900,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 220,000 shares of common stock at $15, receiving cash. Feb. 10 Issued 6,000 shares of preferred 2% stock at $94. Mar. 19 Purchased 130,000 shares of treasury common for $19 per share. May 16 Sold 70,000 shares of treasury common for $23 per share. Aug. 25 Sold 40,000 shares of treasury common for $17 per share. Dec. 6 Declared cash dividends of $1.60 per share on preferred stock and $0.14 per share on common stock. 31 Paid the cash dividends. Required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Common Stock, $12 par (3,000,000 shares authorized, 1,400,000 shares issued)
16,800,000
Paid-In Capital in Excess of Par—Common Stock
1,290,000
Retained Earnings
110,900,000
During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:
Jan.
5
Issued 220,000 shares of common stock at $15, receiving cash.
Feb.
10
Issued 6,000 shares of preferred 2% stock at $94.
Mar.
19
Purchased 130,000 shares of treasury common for $19 per share.
May
16
Sold 70,000 shares of treasury common for $23 per share.
Aug.
25
Sold 40,000 shares of treasury common for $17 per share.
Dec.
6
Declared cash dividends of $1.60 per share on preferred stock and $0.14 per share on common stock.
31
Paid the cash dividends.
Required:
Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Transcribed Image Text:Journal
Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a
journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST, REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
Jan. 5
Cash
3,300,000.00
↑
Common Stock
2,640,000.00
↑
2
Paid-In Capital in Excess of Par-Common Stock
660,000.00
3
4
Feb. 10
Cash
564,000.00
5
Preferred Stock
Paid-In Capital in Excess of Par-Preferred Stock
6
Mar. 19 Treasury Stock
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
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