problem 13 3a coil welding corporation sells and services pipe welding equipment in 500838

Problem 13-3A Coil Welding Corporation sells and services pipe welding equipment in California. The following selected accounts appear in the ledger of Coil Welding Corporation on February 1, 2010, the beginning of the current fiscal year:

Preferred 2% Stock, $25 par (50,000 shares authorized,

40,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

Paid-In Capital in Excess of Par Preferred Stock . . . . . . . 240,000

Common Stock, $5 par (1,000,000 shares authorized,

750,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . 3,750,000

Paid-In Capital in Excess of Par Common Stock . . . . . . . 6,000,000

Retained Earnings . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 36,785,000

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

a. Purchased 60,000 shares of treasury common for $540,000.

b. Sold 42,000 shares of treasury common for $462,000.

c. Issued 7,500 shares of preferred 2% stock at $38.

d. Issued 120,000 shares of common stock at $15, receiving cash.

e. Sold 13,000 shares of treasury common for $110,500.

f. Declared cash dividends of $0.50 per share on preferred stock and $0.42 per share on common stock.

g. Paid the cash dividends.

Instructions:

Journalize the entries to record the transactions. Identify each entry by letter.