Reference no: EM131939056

Problem - Selected Stock Transactions

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

Preferred 2% Stock, $150 par (40,000 shares authorized, 20,000 shares issued)$3,000,000Paid-In Capital in Excess of Par-Preferred Stock360,000Common Stock, $20 par (500,000 shares authorized, 190,000 shares issued)3,800,000Paid-In Capital in Excess of Par-Common Stock490,000Retained Earnings16,218,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

1. Issued 50,000 shares of common stock at $24, receiving cash.

2. Issued 10,000 shares of preferred 2% stock at $164.

3. Purchased 30,000 shares of treasury common for $25 per share.

4. Sold 15,000 shares of treasury common for $28 per share.

5. Sold 10,000 shares of treasury common for $23 per share.

6. Declared cash dividends of $3.00 per share on preferred stock and $0.06 per share on common stock.

7. Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.