Refer to the following transactions.Sold 2,930 shares of $11 par value preferred stock at $14.00 per share.Declared the annual cash dividend of $2.1 per share on common stock. There were 9,000 shares of $1 par value common stock issued and outstanding throughout the year.Issued 3,400 shares of $9 par value preferred stock in exchange for a building when the market price of preferred stock was $13.5 per share.Purchased 120 shares of preferred stock for the treasury at a price of $14.00 per share.Sold 110 shares of the preferred stock held in treasury (see d) for $18 per share.Declared and issued a 16% stock dividend on the $1 par value common stock (see b) when the market price per share was $38. Prepare the journal entries to record each of the above transactions.

Prepare journal entries for the transactions as shown below:

Answered: Refer to the following transactions.…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Refer to the following transactions.

Sold 2,930 shares of $11 par value preferred stock at $14.00 per share.
Declared the annual cash dividend of $2.1 per share on common stock. There were 9,000 shares of $1 par value common stock issued and outstanding throughout the year.
Issued 3,400 shares of $9 par value preferred stock in exchange for a building when the market price of preferred stock was $13.5 per share.
Purchased 120 shares of preferred stock for the treasury at a price of $14.00 per share.
Sold 110 shares of the preferred stock held in treasury (see d) for $18 per share.
Declared and issued a 16% stock dividend on the $1 par value common stock (see b) when the market price per share was $38.

Prepare the journal entries to record each of the above transactions.

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