Reference no: EM132640142

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Preferred 2% Stock, $125 par (70,000 shares authorized, 35,000 shares issued) $4,375,000

Paid-In Capital in Excess of Par-Preferred Stock 525,000

Common Stock, $20 par (700,000 shares authorized, 170,000 shares issued) 3,400,000

Paid-In Capital in Excess of Par-Common Stock 440,000

Retained Earnings 18,529,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity.

They are summarized as follows:

Purchased 42,000 shares of treasury common for $24 per share.
Sold 21,000 shares of treasury common for $27 per share.
Issued 18,000 shares of preferred 2% stock at $143.
Issued 70,000 shares of common stock at $23, receiving cash.
Sold 14,000 shares of treasury common for $22 per share.
Declared cash dividends of $2.50 per share on preferred stock and $0.04 per share on common stock.
Paid the cash dividends.

Required:

Problem 1: Journalize the entries to record the transactions.