On January 5, 2018, Parker Corporation received a chartergranting the right to issue 6,000 shares of $100 par value, 7%cumulative and nonparticipating preferred stock, and 60,000 sharesof $10 par value common stock. It then completed thesetransactions:
Jan. 15th. Issued 40,000 shares of common stock at $18 pershare.
Feb. 22nd. Issued to Martinez Corp. 3,000 shares of preferredstock for the following assets: equipment with a fair value of$30,000; a factory building with a fair value of $60,000; and landwith an appraised value of $170,000.
July 23rd. Purchased 2,000 shares of common stock at $20 pershare.
Oct. 10th. Sold the 2,000 treasury shares at $15 per share.
Dec. 31st. Declared a $0.30 per share cash dividend on thecommon stock and declared the preferred dividend.
Prepare all the necessary journal entries for the transactionslisted above for Parker Corporation.
