Instructions lournalize the entries to record the October transactions. nd and a
ID: 2333639 • Letter: I
Question
Instructions lournalize the entries to record the October transactions. nd and a Bunding, dccording to the plan. PR 12-3B Selected stock transactions amondback Welding & Fabrication Corporation sells and services pipe welding equipment 37llinois. The following selected accounts appear in the ledger of Diamondback Welding & Obj. 2, 3, 5 dividends, D Fabrication at the beginning of the current year: Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued $ GENERAL LEDGER Common Stock, $5 par (6,000,000 shares authorized, 3,150,000 shares issued) .. Paid-In Capital in Excess of Par-Common Stock.... Retained Earnings....o... 210,000 15,750,000 1,400,000 52,840,000 During the year, the corporation completed a number of transactions affecting the stock- holders' 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 $13, 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 $0.03 per share on common stock. G. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter. Obj. 2, 3, 4, 6 PR 12-4B Entries for selected corporate transactions Inc nroduces aeronautical navigation equipment. Navo-Go EnterprisesExplanation / Answer
Journal Entry Transactions Debit Credit A Treasury Stock (87500*8) $700,000 To Cash (87500*8) $700,000 (Being purchased of treasury common share) B Cash (55000*11) $605,000 To Paid-In Capital from sale of treasury stock (55000*(11-8) $165,000 To Treasury Stock (55000*8) 440000 (Being sale of treasury common share) C Cash (20000*84) 1680000 To 2% preferred stock (20000*80) 1600000 To Paid-In Capital in Excess of Par - Preferred Stock (20000*4) 80000 (Being preferred stock issued) D Cash (400000*13) $5,200,000 To Common Stock (400000*5) $2,000,000 To Paid-In Capital in Excess of Par - Common Stock (400000*8) 3200000 (Being preferred stock issued) E Cash (18000*7.50) 135000 Paid-In Capital from sale of treasury stock (18000*0.50) 9000 To Treasury Stock (18000*8) 144000 (Being Sale of treasury common stock) F Cash Dividends $234,065 To Cash Dividends Payable $234,065 (80000*1.60) + (3150000-87500+55000+400000+18000)*0.03 (Being dividend declared for preferred and common stock) G Cash Dividends Payable $234,065 To Cash $234,065 (Being dividend paid)