The following selected accounts appear in the ledger of EJ Construction Inc. at
ID: 2711756 • 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. They are summarized as follows:
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
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Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess of Par—Preferred Stock 159,200 Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) 5,610,000 Paid-In Capital in Excess of Par—Common Stock 1,215,500 Retained Earnings 31,497,000Explanation / Answer
S.no Date Account title and explanation Post Ref Debit $ Credit $ 1 Cash 110 3980000 2 Common stock 311 1215500 3 Paid -in capital in Excess of par- common tock 312 2764500 4 Issued shares of common stock at $9,parvalue$3 5 Jan-05 Cash 110 5610000 6 prefered stock 321 532900 7 Paid -in capital in Excess of par- preferred s tock 322 5077100 8 Feb-10 issued 11000shares of preferred 1%stock at$58 9 Treasury stock 315 363200 10 Cash 110 363200 11 Mar-16 purchased 45400shres of treasury common for $8 per share 12 13 cash 110 214000 14 treasury stock 315 20000 15 paid in capital from sale of treasury stock 331 14000 16 Sold 21400 shares of treasury common for $10 per share 17 cash 110 30100 18 paid in capital from sale of treasury stock 331 4300 19 treasury stock 315 34400 20 Sold 4300 shares of treasury common for $7 per share 21 Cash dividends 351 22 Cash dividends payable 231 23 Declared cash dividends of$0.50 per share on 100000preferred stock and $0.07 per share on common stock