Reference no: EM132537255

Question - 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, $175 par (30,000 shares authorized, 15,000 shares issued) $2,625,000

Paid-In Capital in Excess of Par-Preferred Stock 315,000

Common Stock, $10 par (800,000 shares authorized, 250,000 shares issued) 2,500,000

Paid-In Capital in Excess of Par-Common Stock 330,000

Retained Earnings 12,232,000

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

1. Issued 80,000 shares of common stock at $15, receiving cash.

2. Issued 8,000 shares of preferred 2% stock at $189.

3. Purchased 48,000 shares of treasury common for $14 per share.

4. Sold 24,000 shares of treasury common for $17 per share.

5. Sold 16,000 shares of treasury common for $12 per share.

6. Declared cash dividends of $3.50 per share on preferred stock and $0.08 per share on common stock.

7. Paid the cash dividends.

Required -

1. Journalize the entries to record the transactions.

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