50.1K

Verified Solution

Link Copied!

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: Preferred 2% Stock, $50 par (80,000 shares authorized, 40,000 shares issued) $2,000,000 Paid-In Capital in Excess of Par-Preferred Stock 400,000 Common Stock, $15 par (600,000 shares authorized, 220,000 shares issued) 3,300,000 Paid-In Capital in Excess of Par-Common Stock 430,000 Retained Earnings 12,996,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 36,000 shares of treasury common for $20 per share. b. Sold 18,000 shares of treasury common for $23 per share. C. Issued 20,000 shares of preferred 2% stock at $67. d. Issued 60,000 shares of common stock at $19, receiving cash. e. Sold 12,000 shares of treasury common for $18 per share. f. Declared cash dividends of $1.00 per share on preferred stock and $0.06 per share on common stock. g. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Treasury Stock 720,000 0 Cash o 720,000 V b. Cash 414,000 0

Answer & Explanation Solved by verified expert

See Answer