View the step-by-step solution to:

Coil Welding Corporation sells and services pipe welding equipment in California.

Coil Welding Corporation sells and services pipe welding equipment in California. The following selected accounts appear in the ledger of coil welding corporation on February 1,2010, the beginning of the current fiscal year:
Preferred 2% stock, $25 par (50,000 shares authorized, 40,000 shares issued) …………. $1,000,000
Paid –In Capital in Excess of Par- Preferred stock ………………………………………………………..$ 240,000
Common Stock, $5 par (1,000,000 shares authorized, 750,000 shares issued…………… $3,750,000
Paid-In capital in excess of par- common stock …………………………………………………………..$6,000,000
Retained Earnings…………………………………………………………………………………………………………$36,785,000

During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows:
a. Purchased 60,000 shares of treasury common for $540,000
b. Sold 42,000 shares of treasury common for $462,000.
c. Issued 7,500 shares of preferred 2% stock at $38.
d. Issued 120,000 shares of common stock at $15, receiving cash.
e. Sold 13,000 shares of treasury common for 110,500.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.42 per share on common stock.
g. Paid cash dividends.


Instructions
Journalize the entries to record the transactions.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question