The following selected accounts appear in the ledger of EJ Construction Inc. at
ID: 2423895 • Letter: T
Question
The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year:
During the year, the corporation completed a number of transactions affecting the stockholders’ equity
The owners' equity in a corporation.
. They are summarized as follows:
The stock outstanding when a corporation has issued only one class of stock.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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Preferred 1% Stock, $50 par (100,000 shares authorized, 79,500 shares issued) $3,975,000 Paid-In Capital in Excess of Par—Preferred Stock 151,050 Common Stock, $3 par (5,000,000 shares authorized, 2,460,000 shares issued) 7,380,000 Paid-In Capital in Excess of Par—Common Stock 1,722,000 Retained Earnings 34,910,000Explanation / Answer
jan5 cash (521500 *9) Dr. 4693500
To Paid-In Capital in Excess of Par-Common Stock ( 521500 * 6) $3129000
To common stock (521500 * 3) $1564500
feb10 cash(9100 * 59) 536900
To Paid-In Capital in Excess of Par-Preferred Stock(9100*9) 81900
To preferred stock(9100 * $50) 455000
Mar 19 Treasury stock(51600 * 6 ) Dr 309600
To cash 309600
May 16 cash (18700* 8) Dr149600
To treasury stock(18700 * 3) 56100
To paid in capital from sale of treasury 93500
Aug 25 cash (4800* 5) Dr24000
To treasury stock(4800 * 3) 14400
To paid in capital from sale of treasury 9600
Dec 6 retained earning (0.50 *[79500 +91000]) Dr.44300
To cash dividend payable $44300
retained earning (0.06*[2460000+521500 -51600]) Dr.175794
To cash dividend payable 175794
Dec31 cash dividend payable Dr.220094
To cash 220094