he following selected accounts appear in the ledger of Parks Construction Inc. at the
beginning of the current year:
Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) . . . . . . . $ 6,000,000
Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000
Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued) . . . . . . . 24,000,000
Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,850,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,400,000
During the year, the corporation completed a number of transactions affecting the
stockholders’ equity. They are summarized as follows:
a. Issued 400,000 shares of common stock at $11, receiving cash.
b. Issued 5,000 shares of preferred 2% stock at $90.
c. Purchased 150,000 shares of treasury common for $10 per share.
d. Sold 80,000 shares of treasury common for $13 per share.
e. Sold 20,000 shares of treasury common for $9 per share.
f. Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share
on common stock.
g. Paid the cash dividends.