The following selected accounts appear in the ledger of Parks Construction Inc.
ID: 2599561 • Letter: T
Question
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
Issued 60,000 shares of common stock at $22, receiving cash.
Issued 18,000 shares of preferred 2% stock at $164.
Purchased 36,000 shares of treasury common for $20 per share.
Sold 18,000 shares of treasury common for $23 per share.
Sold 12,000 shares of treasury common for $18 per share.
Declared cash dividends of $3.00 per share on preferred stock and $0.10 per share on common stock.
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 60,000 shares of common stock at $22, receiving cash.
b. Issued 18,000 shares of preferred 2% stock at $164.
c. Purchased 36,000 shares of treasury common for $20 per share.
d. Sold 18,000 shares of treasury common for $23 per share.
e. Sold 12,000 shares of treasury common for $18 per share.
f. Declared cash dividends of $3.00 per share on preferred stock and $0.10 per share on common stock.
g. Paid the cash dividends.
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 630,000 Common Stock, $15 par (600,000 shares authorized, 330,000 shares issued) 4,950,000 Paid-In Capital in Excess of Par—Common Stock 640,000 Retained Earnings 24,316,000Explanation / Answer
a Cash 1320000 =60000*22 Common Stock 900000 =60000*15 Paid-In Capital in Excess of Par-Common Stock 420000 b Cash 2952000 =18000*164 Preferred Stock 2700000 =18000*150 Paid-In Capital in Excess of Par-Preferred Stock 252000 c Treasury Stock 720000 =36000*20 Cash 720000 d Cash 414000 =18000*23 Treasury Stock 360000 =18000*20 Paid-In Capital from Sale of Treasury Stock 54000 e Cash 216000 =12000*18 Paid-In Capital from Sale of Treasury Stock 24000 Treasury Stock 240000 =12000*20 f Cash Dividends 197400 =(35000+18000)*3+(330000+60000-36000+18000+12000)*0.1 Cash Dividends Payable 197400 g Cash Dividends Payable 197400 Cash 197400