Selected Stock Transactions The following selected accounts appear in the ledger

Question

Selected Stock Transactions

The following selected accounts appear in the ledger of Patton Environmental Inc. on July 1, 2014, the beginning of the current fiscal year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

Issued 70,000 shares of common stock at $27, receiving cash.

Issued 13,000 shares of preferred 2% stock at $217.

Purchased 42,000 shares of treasury common for $966,000.

Sold 21,000 shares of treasury common for $546,000.

Sold 14,000 shares of treasury common for $294,000.

Declared cash dividends of $4.00 per share on preferred stock and $0.10 per share on common stock.

Paid the cash dividends.

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Required:

a. Issued 70,000 shares of common stock at $27, receiving cash.

   

  

  

  

  

  

  

  

  

  

b. Issued 13,000 shares of preferred 2% stock at $217.

   

  

  

  

  

  

  

  

  

  

c. Purchased 42,000 shares of treasury common for $966,000.

   

  

  

  

  

d. Sold 21,000 shares of treasury common for $546,000.

   

  

  

  

  

  

  

  

  

  

e. Sold 14,000 shares of treasury common for $294,000.

   

  

  

  

  

  

  

  

  

  

f. Declared cash dividends of $4.00 per share on preferred stock and $0.10 per share on common stock.

   

  

  

  

  

g. Paid the cash dividends.

   

  

  

  

  

Preferred 2% Stock, $200 par (50,000 shares authorized, 25,000 shares issued) $5,000,000 Paid-In Capital in Excess of Par—Preferred Stock 800,000 Common Stock, $20 par (700,000 shares authorized,
320,000 shares issued) 6,400,000 Paid-In Capital in Excess of Par—Common Stock 830,000 Retained Earnings 27,624,000

Explanation / Answer

a) Issued 70000 shares of Common Stock @ $27 receiving CAsh

b) Issued 13000 shares of Preferred 2% Stock at $217

C) Purchased 42,000 shares of treasury common for $966,000.

d) Sold 21,000 shares of treasury common for $546,000.

e) Sold 14,000 shares of treasury common for $294,000.

f) Declared cash dividends of $4.00 per share on preferred stock and $0.10 per share on common stock.

f) Paid the cash dividends.

CAsh A/c 1890000 TO Common Stock 1400000 To Additional Paid in CApital 490000 (Being Common Shares Issued for CAsh)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.