The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...

90.2K

Verified Solution

Question

Accounting

The following selected accounts appear in the ledger of ParksConstruction Inc. at the beginning of the current fiscal year:
Preferred 2% Stock, $75 par(100,000 shares authorized, 80,000 shares issued) $6,000,000
Paid-In Capital in Excess ofPar—Preferred Stock 420,000
Common Stock, $8 par (5,000,000shares authorized, 3,000,000 shares issued) 24,000,000
Paid-In Capital in Excess ofPar—Common Stock 1,850,000
Retained Earnings 115,400,000
During the year, the corporation completed a number oftransactions affecting the stockholders’ equity. They aresummarized as follows:
Jan. 5 Issued 400,000 shares of commonstock at $11, receiving cash.
Feb. 10 Issued 5,000 shares of preferred 2%stock at $90.
Mar. 19 Purchased 150,000 shares oftreasury stock for $10 per share.
May 16 Sold 80,000 shares of treasurystock for $13 per share.
Aug. 25 Sold 20,000 shares of treasurystock for $9 per share.
Dec. 6 Declared cash dividends of $1.50per share on preferred stock and $0.06 per share on commonstock.
31 Paid the cash dividends.

Answer & Explanation Solved by verified expert

4.1 Ratings (763 Votes)

Date Account Titles and Explaination Debit Credit 05Jan Cash 400000 shares X 11 4400000 Common stock 400000 X 8 3200000 Paid in capital in excess of par Common stock 118 X 400000 1200000 Being common stock issued 10Feb Cash 5000 shares X 90 450000 Preferred stock 5000 shares X 75 375000 Paid in See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

The following selected accounts appear in the ledger of ParksConstruction Inc. at the beginning of the current fiscal year:Preferred 2% Stock, $75 par(100,000 shares authorized, 80,000 shares issued)$6,000,000Paid-In Capital in Excess ofPar—Preferred Stock420,000Common Stock, $8 par (5,000,000shares authorized, 3,000,000 shares issued)24,000,000Paid-In Capital in Excess ofPar—Common Stock1,850,000Retained Earnings115,400,000During the year, the corporation completed a number oftransactions affecting the stockholders’ equity. They aresummarized as follows:Jan.5Issued 400,000 shares of commonstock at $11, receiving cash.Feb.10Issued 5,000 shares of preferred 2%stock at $90.Mar.19Purchased 150,000 shares oftreasury stock for $10 per share.May16Sold 80,000 shares of treasurystock for $13 per share.Aug.25Sold 20,000 shares of treasurystock for $9 per share.Dec.6Declared cash dividends of $1.50per share on preferred stock and $0.06 per share on commonstock.31Paid the cash dividends.

Preferred 2% Stock, $75 par(100,000 shares authorized, 80,000 shares issued)	$6,000,000
Paid-In Capital in Excess ofPar—Preferred Stock	420,000
Common Stock, $8 par (5,000,000shares authorized, 3,000,000 shares issued)	24,000,000
Paid-In Capital in Excess ofPar—Common Stock	1,850,000
Retained Earnings	115,400,000

Jan.	5	Issued 400,000 shares of commonstock at $11, receiving cash.
Feb.	10	Issued 5,000 shares of preferred 2%stock at $90.
Mar.	19	Purchased 150,000 shares oftreasury stock for $10 per share.
May	16	Sold 80,000 shares of treasurystock for $13 per share.
Aug.	25	Sold 20,000 shares of treasurystock for $9 per share.
Dec.	6	Declared cash dividends of $1.50per share on preferred stock and $0.06 per share on commonstock.
	31	Paid the cash dividends.