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

ID: 2425736 • Letter: T

Question

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

During the year, the corporation completed a number of transactions affecting the stockholders’ equity

The owners' equity in a corporation.

. They are summarized as follows:

The stock outstanding when a corporation has issued only one class of stock.

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess of Par—Preferred Stock 159,200 Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) 5,610,000 Paid-In Capital in Excess of Par—Common Stock 1,215,500 Retained Earnings 31,497,000

Explanation / Answer

Journal Debit Credit cash    4,796,100 Common stock    1,598,700 Paid in excess of par-common stock    3,197,400 Cash       638,000 Preferred stock       550,000 Paid-In Capital in Excess of Par—Preferred Stock          88,000 Treasury stock       363,200 cash       363,200 cash       214,000 Treasury stock          64,200 Paid in excess of par-common stock       149,800 cash          30,100 Treasury stock          12,900 Paid in excess of par-common stock          17,200 Dividend       212,124 Dividend payable       212,124 Dividend payable cash Working: Common stock 1,870,000 Addition: 558,600 purchase of treasury stock       (45,400)    2,383,200 Dividend       166,824 Preferred stock 79,600 Addition          11,000          90,600 Dividend          45,300 Total dividend       212,124

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