PR 11-3A  Selected stock transactions                                                        ObJ.  2,  3, 4

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

Preferred 1% Stock, $50 par (100,000 shares authorized,

 

80,000 shares issued)  ....................................................	$ 4,000,000
Paid-In Capital in Excess of Par—Preferred Stock............................	175,000
Common Stock, $3 par (5,000,000 shares authorized, 2,000,000  shares  issued)  .................................................	  6,000,000
Paid-In Capital in Excess of Par—Common Stock............................	1,500,000
Retained   Earnings  .........................................................	32,350,000

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.