FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Instructions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued)
Paid-In Capital in Excess of Par-Preferred Stock
Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued)
Paid-In Capital in Excess of Par-Common Stock
Retained Earnings
$8,000,000
440,000
20,000,000
2,280,000
115,400,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Issued 220,000 shares of common stock at $14, receiving cash.
b. Issued 12,000 shares of preferred 2% stock at $110.
c. Purchased 160,000 shares of treasury common for $10 per share.
d. Sold 105,000 shares of treasury common for $16 per share.
e. Sold 40,000 shares of treasury common for $8 per share.
f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
Transcribed Image Text:General Journal
Journalize the entries to record the transactions on December 31.
General Journal Instructions
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DATE
DESCRIPTION
JOURNAL
POST. REF.
DEBIT
CREDIT
ASSE
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