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Question: the following selected accounts appear in the ledger of ej...

Question details

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

Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100 shares issued) $3,755,000
Paid-In Capital in Excess of Par—Preferred Stock 165,220
Common Stock, $3 par (5,000,000 shares authorized, 2,020,000 shares issued) 6,060,000
Paid-In Capital in Excess of Par—Common Stock 1,212,000
Retained Earnings 35,446,000

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

Jan. 5 Issued 519,600 shares of common stock at $8, receiving cash.
Feb. 10 Issued 10,800 shares of preferred 1% stock at $61.
Mar. 19 Purchased 46,400 shares of treasury common for $8 per share.
May 16 Sold 20,800 shares of treasury common for $10 per share.
Aug. 25 Sold 5,600 shares of treasury common for $7 per share.
Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.10 per share on common stock.
31 Paid the cash dividends.

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

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

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