Selected stock transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Line Item Description Amount Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) $4,800,000 Paid-In Capital in Excess of Par—Preferred Stock 210,000 Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) 15,750,000 Paid-In Capital in Excess of Par—Common Stock 1,400,000 Retained Earnings 52,840,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: Purchased 87,500 shares of treasury common for $8 per share. Sold 55,000 shares of treasury common for $11 per share. Issued 20,000 shares of preferred 2% stock at $84. Issued 400,000 shares of common stock at $13, receiving cash. Sold 18,000 shares of treasury common for $7.50 per share. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Selected stock transactions

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Line Item Description	Amount
Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued)	$4,800,000
Paid-In Capital in Excess of Par—Preferred Stock	210,000
Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued)	15,750,000
Paid-In Capital in Excess of Par—Common Stock	1,400,000
Retained Earnings	52,840,000

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

Purchased 87,500 shares of treasury common for $8 per share.
Sold 55,000 shares of treasury common for $11 per share.
Issued 20,000 shares of preferred 2% stock at $84.
Issued 400,000 shares of common stock at $13, receiving cash.
Sold 18,000 shares of treasury common for $7.50 per share.
Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock.
Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

If an amount box does not require an entry, leave it blank.

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