Selected Stock TransactionsThe following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:Preferred 2% Stock, $150 par (70,000 shares authorized, 35,000 shares issued)$5,250,000Paid-In Capital in Excess of Par—Preferred Stock840,000Common Stock, $25 par (500,000 shares authorized, 330,000 shares issued)8,250,000Paid-In Capital in Excess of Par—Common Stock1,070,000Retained Earnings32,669,000During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:Issued 50,000 shares of common stock at $28, receiving cash.Issued 18,000 shares of preferred 2% stock at $170.Purchased 30,000 shares of treasury common for $30 per share.Sold 15,000 shares of treasury common for $33 per share.Sold 10,000 shares of treasury common for $28 per share.Declared cash dividends of $3.00 per share on preferred stock and $0.04 per share on common stock.Paid the cash dividends.Required:Journalize the entries to record the transactions.For a compound transaction, if an amount box does not require an entry, leave it blank.

When an event occurs in the business that can be measured and expressed in terms of money, it should…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, $150 par (70,000 shares authorized, 35,000 shares issued)	$5,250,000
Paid-In Capital in Excess of Par—Preferred Stock	840,000
Common Stock, $25 par (500,000 shares authorized, 330,000 shares issued)	8,250,000
Paid-In Capital in Excess of Par—Common Stock	1,070,000
Retained Earnings	32,669,000

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

Issued 50,000 shares of common stock at $28, receiving cash.
Issued 18,000 shares of preferred 2% stock at $170.
Purchased 30,000 shares of treasury common for $30 per share.
Sold 15,000 shares of treasury common for $33 per share.
Sold 10,000 shares of treasury common for $28 per share.
Declared cash dividends of $3.00 per share on preferred stock and $0.04 per share on common stock.
Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

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