Please help me with the last two parts. The following selected accounts appear i
ID: 2575651 • Letter: P
Question
Please help me with the last two parts.
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $125 par (90,000 shares authorized, 45,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $15 par (500,000 shares authorized, 270,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Issued 50,000 shares of common stock at $19, receiving cash. $5,625,000 675,000 4,050,000 530,000 23,066,000 Issued 23,000 shares of preferred 2% stock at $144 c. Purchased 30,000 shares of treasury common for $17 per share. d. Sold 15,000 shares of treasury common for $20 per share. e. Sold 10,000 shares of treasury common for $15 per share. f. Declared cash dividends of $2.50 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Required: a. Issued 50,000 shares of common stock at $19, receiving cash. Cash- 950,000 V Common Stock 750,000 Paid-In Capital in Excess of Par-Common Stock 200,000 Feedbadk b. Issued 23,000 shares of preferred 2% stock at $144 Cash- 3,312,000V Preferred Stock 2,875,000 Paid-In Capital in Excess of Par-Preferred Stock 437,000 V Feedbadk c. Purchased 30,000 shares of treasury common for $17 per share. Treasury Stoc510,000 Cash- 510,000 V Feedbadk d. Sold 15,000 shares of treasury common for $20 per share. Cash- 300,000 Treasury Stock 255,000 | Paid-In Capital from Sale of Treasury Stock 5,000Explanation / Answer
Ans for (f) and (g) is $ 128,700 for all the boxes.
No of Shares = Shares issued (and not authorized)
PREFERRED STOCK 45000 SHARES COMMON STOCK 270000 SHARES PREFERRED DIVIDEND 45000 * 2.50 112500 DIVIDEND ON COMMON STOCK 270000 * 0.06 16200 TOTAL DIVIDEND 128700