Question

Oriole Company had these transactions during the current period.

June 12		Issued 89,000 shares of $1 par value common stock for cash of $333,750.
July 11		Issued 2,800 shares of $102 par value preferred stock for cash at $107 per share.
Nov. 28		Purchased 1,250 shares of treasury stock for $9,750.

Prepare the journal entries for the Oriole Company transactions shown above. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Ans.	Date	General Journal	Debit	Credit
	12-Jun	Cash	$333,750
		Common stock (89,000 * $1)		$89,000
		Paid in capital in excess of stated value		$244,750
		(Common stock issued on excess of stated value)
	11-Jul	Cash   (2,800*$107)	$299,600
		Preferred stock (2,800*$102)		$285,600
		Paid in capital in excess of par		$14,000
		(Preferred shares issued on premium)
	28-Nov	Treasury stock	$9,750
		Cash		$9,750
		(To record the issurance of treasury stock)
	*Paid in capital in excess of stated value = Cash - Common stock
	*Paid in capital in excess of par value = Cash - Preferred stock