80.2K

Verified Solution

Link Copied!

Selected Stock Transactions

The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year:

Preferred 2% Stock, $200 par (50,000 shares authorized, 25,000 shares issued)	$5,000,000
Paid-In Capital in Excess of ParPreferred Stock	600,000
Common Stock, $25 par (700,000 shares authorized, 210,000 shares issued)	5,250,000
Paid-In Capital in Excess of ParCommon Stock	680,000
Retained Earnings	24,444,000

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

Issued 70,000 shares of common stock at $29, receiving cash.

Issued 13,000 shares of preferred 2% stock at $220.

Purchased 42,000 shares of treasury common for $26 per share.

Sold 21,000 shares of treasury common for $29 per share.

Sold 14,000 shares of treasury common for $24 per share.

Declared cash dividends of $4.00 per share on preferred stock and $0.10 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.

Question Content Area

a. Issued 70,000 shares of common stock at $29, receiving cash.

blank	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash	Cash	Cash
	CashCommon StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockCommon Stock	Common Stock	Common Stock
	Paid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockPaid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock

Question Content Area

b. Issued 13,000 shares of preferred 2% stock at $220.

blank	CashPaid-In Capital in Excess of Par-Preferred StockPreferred StockRetained EarningsTreasury StockCash	Cash	Cash
	CashPaid-In Capital in Excess of Par-Common StockPreferred StockRetained EarningsTreasury StockPreferred Stock	Preferred Stock	Preferred Stock
	CashPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockPaid-In Capital in Excess of Par-Preferred Stock	Paid-In Capital in Excess of Par-Preferred Stock	Paid-In Capital in Excess of Par-Preferred Stock

Question Content Area

c. Purchased 42,000 shares of treasury common for $26 per share.

blank	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash	Cash	Cash

Question Content Area

d. Sold 21,000 shares of treasury common for $29 per share.

blank	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash	Cash	Cash
	CashCommon StockPaid-In Capital In Excess of Par Value-Common StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockGain from Sale of Treasury StockPaid-In Capital from Sale of Treasury StockRetained EarningsPaid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock

Question Content Area

e. Sold 14,000 shares of treasury common for $24 per share.

blank	CashCommon StockPaid-In Capital in Excess of Par Value-Common StockRetained EarningsTreasury StockCash	Cash	Cash
	Common StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Preferred StockRetained EarningsTreasury StockPaid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock

Question Content Area

f. Declared cash dividends of $4.00 per share on preferred stock and $0.10 per share on common stock.

blank	CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash Dividends	Cash Dividends	Cash Dividends
	CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash Dividends Payable	Cash Dividends Payable	Cash Dividends Payable

Question Content Area

g. Paid the cash dividends.

blank	CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash Dividends Payable	Cash Dividends Payable	Cash Dividends Payable
	CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash

Answer & Explanation Solved by verified expert

See Answer