The following selected accounts appear in the ledger of EJ construction Inc. at the beginning of the current fiscal year: Account Amount Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000...


The following selected accounts appear in the ledger of EJ construction Inc.<br>at the beginning of the current fiscal year:<br>Account<br>Amount<br>Preferred 1% Stock, $50 par (100,000 shares authorized, 80,000 shares<br>issued)<br>$4,000,000<br>Paid-In Capital in Excess of Par – Preferred Stock<br>$175,000<br>Common Stock, $3 par (5,000,000 shares authorized, 2,000,000 shares<br>issued)<br>$6,000,000<br>Paid-In Capital in Excess of Par – Common Stock<br>$1,500,000<br>Retained Earnings<br>$32,350,000<br>Retrieved from:<br>Warren, C. S., Reeve, J. M., & Duchac, J. (2016). Accounting (26 ed.). Boston, MA: Cengage Learning.<br>a) During the year, the corporation completed a number of transactions<br>affecting the stockholders' equity. They are summarized as follows:<br>b) Issued 500,000 shares of common stock at $8, receiving cash.<br>c) Issued 10,000 shares of preferred 1% stock at $60.<br>d) Purchased 50,000 shares of treasury common for $7 per share.<br>e) Sold 20,000 shares of treasury common for $9 per share.<br>f) Sold 5,000 shares of treasury common for $6 per share.<br>g) Declared cash dividends of $0.50 per share on preferred stock and<br>$0.08 per share on common stock.<br>h) Paid the cash dividends.<br>Instructions<br>Journalize the entries to record the transactions. Identify each entry by<br>letter.<br>

Extracted text: The following selected accounts appear in the ledger of EJ construction Inc. at the beginning of the current fiscal year: Account Amount 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 Retrieved from: Warren, C. S., Reeve, J. M., & Duchac, J. (2016). Accounting (26 ed.). Boston, MA: Cengage Learning. a) During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: b) Issued 500,000 shares of common stock at $8, receiving cash. c) Issued 10,000 shares of preferred 1% stock at $60. d) Purchased 50,000 shares of treasury common for $7 per share. e) Sold 20,000 shares of treasury common for $9 per share. f) Sold 5,000 shares of treasury common for $6 per share. g) Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock. h) Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.

Jun 02, 2022
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