eBook Show Me How Calculator Chart of Journal The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) Paid-In Capital in Excess of Par Preferred Stock Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $6,000,000 420,000 24,000,000 1,850,000 115,400,000 stockholders eguty They are summarized as follows During the year, the corporation completed a number of transactions affecting the Jan. 5 Issued 400,000 shares of common stock at $11, receiving cash. Feb. 10 issued 5,000 shares of preferred 2% stock at S90 Mar 19 Purchased 150,000 shares of treasury common for $10 per share May 16 Sold 80,000 shares of treasury common for $13 per share. Aug. 25 Sold 20,000 shares of treasury common for $9 per share Dec. 6 Declared cash dividends of $1.50 per share on preferred stock and S0.06 per share on common stock 31 Paid the cash dividends Check My Work
Journal Entries Date Accounting titles & Explanations Debit Credit 5-Jan Cash (400,000*11) 4400000 Common stock (400,000*8) 3200000 Paid in capital in excess of par- CS (400,000*3) 1200000 10-Feb Cash (5000*90) 450000 Preferred stock (5000*75) 375000 Paid in capital in excess of par -PS (5000*15) 75000 19-Mar Treasury stock 1500000 Cash (150,000*10) 1500000 16-May Cash (80,000*13) 1040000 Treasury stock (80,000*10) 800000 Paid in capital in excess of par -TS (80,000*3) 240000 25-Aug Cash (20,000*9) 180000 Paid in capital in excess of par-TS 20,000 Treasury stock (20,000*10) 200000 6-Dec Cash dividend 328,500 Dividends payable 328,500 (preferred (80,000+5000)*1.50- 127500 (Common (3,350,000*.06)- 201000 total 328500 31-Dec Dividends payable 328,500 cash 328,500 common shares outstanding on the date of dividend beg,.bal 3,000,000 issued 400,000 Treasury -150,000 reissued 80,000 reissued 20,000 End bal 3,350,000
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