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

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Accounting

The following selected accounts appear in the ledger of ParksConstruction Inc. at the beginning of the current fiscal year:Preferred 1% Stock, $50 par (100,000 shares authorized, 79,400shares issued) $3,970,000 Paid-In Capital in Excess ofPar—Preferred Stock 150,860 Common Stock, $3 par (5,000,000 sharesauthorized, 2,100,000 shares issued) 6,300,000 Paid-In Capital inExcess of Par—Common Stock 1,260,000 Retained Earnings 33,959,000During the year, the corporation completed a number of transactionsaffecting the stockholders’ equity. They are summarized as follows:Jan. 5 Issued 518,800 shares of common stock at $7, receiving cash.Feb. 10 Issued 9,800 shares of preferred 1% stock at $61. Mar. 19Purchased 48,300 shares of treasury stock for $7 per share. May 16Sold 19,500 shares of treasury stock for $9 per share. Aug. 25 Sold5,000 shares of treasury stock for $6 per share. Dec. 6 Declaredcash dividends of $0.50 per share on preferred stock and $0.08 pershare on common stock. 31 Paid the cash dividends. Journalize theentries to record the transactions. Refer to the Chart of Accountsfor exact wording of account titles.

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4.4 Ratings (717 Votes)

Jan 5 Cash 3631600 =518800*7
        Common Stock 1556400 =518800*3
        Paid-In Capital in Excess of Par-Common Stock 2075200
Feb 10 Cash 597800 =9800*61
       Preferred Stock 490000 =9800*50
       Paid-In Capital in Excess of Par-Preferred Stock 107800
Mar 19 Treasury Stock 338100 =48300*7
        Cash 338100
May 16 Cash 175500 =19500*9
       Treasury Stock 136500 =19500*7
       Paid-In Capital from Sale of Treasury Stock 39000
Aug 25 Cash 30000 =5000*6
Paid-In Capital from Sale of Treasury Stock 5000
       Treasury Stock 35000 =5000*7
Dec 6 Cash Dividends 252200
       Cash Dividends Payable 252200
Dec 31 Cash Dividends Payable 252200
      Cash 252200
Workings:
Dividends on Preferred Stock 44600 =(79400+9800)*0.5
Dividends on COmmon Stock 207600 =(2100000+518800-48300+19500+5000)*0.08
Total dividends 252200

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