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Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $75 par [100.000 shares authorized, 80.000 shares issued) $ 6.000.000 Paid-In Capital in Excess of Par—Preferred Stock 420,000 Common Stock, $8 par (5,000.000 shares authorized, 3,000,000 shares issued} 24,000,000 Paid-In Capital in Excess of Par—Common Stock 1,850,000 Retained Earnings 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Issued 400,000 shares of common stock at $11, receiving cash. b. Issued 5,000 shares of preferred 2% stock at $90. c. Purchased 150,000 shares of treasury common for $10 per share. d. Sold 80,000 shares of treasury common for $13 per share. e. Sold 20,000 shares of treasury common for $9 per share. f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 13, Problem 13.3APR
Textbook Problem

Selected stock transactions

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

Preferred 2% Stock, $75 par [100.000 shares authorized, 80.000 shares issued) $ 6.000.000
Paid-In Capital in Excess of Par—Preferred Stock 420,000
Common Stock, $8 par (5,000.000 shares authorized, 3,000,000 shares issued} 24,000,000
Paid-In Capital in Excess of Par—Common Stock 1,850,000
Retained Earnings 115,400,000

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

  1. a. Issued 400,000 shares of common stock at $11, receiving cash.
  2. b. Issued 5,000 shares of preferred 2% stock at $90.
  3. c. Purchased 150,000 shares of treasury common for $10 per share.
  4. d. Sold 80,000 shares of treasury common for $13 per share.
  5. e. Sold 20,000 shares of treasury common for $9 per share.
  6. f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.
  7. g. Paid the cash dividends.

Instructions

Journalize the entries to record the transactions. Identify each entry by letter.

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Chapter 13 Solutions

Accounting
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