Reference no: EM132677643
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year:
Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued)$6,000,000
Paid-In Capital in Excess of Par-Preferred Stock 420,000
Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued)24,000,000
Paid-In Capital in Excess of Par-Common Stock1,850,000
Retained Earnings 115,400,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity.
They are summarized as follows:
Jan.5 Issued 400,000 shares of common stock at $11, receiving cash.
Feb.10 Issued 5,000 shares of preferred 2% stock at $90.
Mar.19 Purchased 150,000 shares of treasury stock for $10 per share.
May16 Sold 80,000 shares of treasury stock for $13 per share.
Aug.25 Sold 20,000 shares of treasury stock for $9 per share.
Dec.6 Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.
31 Paid the cash dividends.
Problem 1: Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.