Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 29

Selected stock transactions
The following selected accounts appear in the ledger of EJ Construction Inc. at 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:
a. Issued 500,000 shares of common stock at $8, receiving cash.
b. Issued 10,000 shares of preferred 1% stock at $60.
c. Purchased 50,000 shares of treasury common for $7 per share.
d. Sold 20,000 shares of treasury common for $9 per share.
e. Sold 5,000 shares of treasury common for $6 per share.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock.
g. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter.