PR 11-3A Selected stock transactions ObJ. 2, 3, 4
The following selected accounts appear in the ledger of EJ Construction Inc. at the begin- ning 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 Par—Preferred 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 Par—Common 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:
a. Issued 500,000 shares of common stock at $8, receiving cash.
b. Issued 10,000 shares of preferred 1% stock at $60.
c. Purchased 50,000 shares of treasury common for $7 per share.
d. Sold 20,000 shares of treasury common for $9 per share.
e. Sold 5,000 shares of treasury common for $6 per share.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter.
