Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 6

Selected stock transactions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
A. Issued 400,000 shares of common stock at $11, receiving cash.
B. Issued 5,000 shares of preferred 2% stock at $90.
C. Purchased 150,000 shares of treasury common for $10 per share.
D. Sold 80,000 shares of treasury common for $13 per share.
E. Sold 20,000 shares of treasury common for $9 per share.
F. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.
G. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter.