Reference no: EM132955522
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $75 par (50,000 shares authorized, 25,000 shares issued)$1,875,000
Paid-In Capital in Excess of Par-Preferred Stock225,000
Common Stock, $25 par (500,000 shares authorized, 260,000 shares issued)6,500,000
Paid-In Capital in Excess of Par-Common Stock850,000
Retained Earnings20,034,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
- Issued 50,000 shares of common stock at $30, receiving cash.
- Issued 13,000 shares of preferred 2% stock at $92.
- Purchased 30,000 shares of treasury common for $28 per share.
- Sold 15,000 shares of treasury common for $31 per share.
- Sold 10,000 shares of treasury common for $26 per share.
- Declared cash dividends of $1.50 per share on preferred stock and $0.04 per share on common stock.
- Paid the cash dividends.
Required:
Problem 1: Journalize the entries to record the transactions.
a. Issued 50,000 shares of common stock at $30, receiving cash.
b. Issued 13,000 shares of preferred 2% stock at $92.
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