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 Corporation at the beginning of the current fiscal year: Preferred 2% Stock, $80 par (100,000 shares authorized 60,000 shares issued $ 4,800,000 Paid In Capital in Excess of Par Preferred Stock 210,000 Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued...... 15.750,000 Paid In Capital in Excess of Par—Common Stock 1,400,000 Retained Earnings..... 52.840,000 During the year, the corpora lion completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 87,500 shares of treasury common for $8 per share. b. Sold 55,000 shares of treasury common for $11 per share. c. Issued 20,000 shares of preferred 2% stock at $84. d. Issued 400,000 shares of common stock at 513, receiving cash. e. Sold 18,000 shares of treasury common for $7.50 per share. f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 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 (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 13, Problem 13.3BPR
Textbook Problem

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 Corporation at the beginning of the current fiscal year:

Preferred 2% Stock, $80 par (100,000 shares authorized 60,000 shares issued $ 4,800,000
Paid In Capital in Excess of Par Preferred Stock 210,000
Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued...... 15.750,000
Paid In Capital in Excess of Par—Common Stock 1,400,000
Retained Earnings..... 52.840,000

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

  1. a. Purchased 87,500 shares of treasury common for $8 per share.
  2. b. Sold 55,000 shares of treasury common for $11 per share.
  3. c. Issued 20,000 shares of preferred 2% stock at $84.
  4. d. Issued 400,000 shares of common stock at 513, receiving cash.
  5. e. Sold 18,000 shares of treasury common for $7.50 per share.
  6. f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 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 (Text Only)
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