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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year:
| Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares issued) | $4,000,000 |
| Paid-In Capital in Excess of ParPreferred Stock | 175,000 |
| Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares issued) | 6,000,000 |
| Paid-In Capital in Excess of ParCommon Stock | 1,500,000 |
| Retained Earnings | 32,350,000 |
During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows:
| Jan. | 5 | Issued 500,000 shares of common stock at $8, receiving cash. |
| Feb. | 10 | Issued 10,000 shares of preferred 1% stock at $60. |
| Mar. | 19 | Purchased 50,000 shares of treasury common for $7 per share. |
| May | 16 | Sold 20,000 shares of treasury common for $9 per share. |
| Aug. | 25 | Sold 5,000 shares of treasury common for $6 per share. |
| Dec. | 6 | Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock. |
| | 31 | Paid the cash dividends. | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | | 1 | | | | | | | 2 | | | | | | | 3 | | | | | | | 4 | | | | | | | 5 | | | | | | | 6 | | | | | | | 7 | | | | | | | 8 | | | | | | | 9 | | | | | | | 10 | | | | | | | 11 | | | | | | | 12 | | | | | | | 13 | | | | | | | 14 | | | | | | | 15 | | | | | | | 16 | | | | | | | 17 | | | | | | | 18 | | | | | | |
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