The stockholders’ equity section of the Olivia Corporation’s balance sheet at December 31, 2019, appears below:
Common stock, $10 par value, 400,000 shares authorized;
300,000 issued and outstanding $3,000,000
Paid-in capital in excess of par 1,200,000
Total paid-in capital 4,200,000
Retained earnings 900,000
Total stockholders’ equity $5,100,000
During 2020, the following stock transactions occurred. Prepare the journal entries to record these stock transactions.
Jan. 18 Issued 50,000 shares of common stock at $23 per share.
Aug. 20 Purchased 15,000 shares of Olivia Corporation’s common stock at $24 per share to be held in the treasury.
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