Question

Oriole Company had these transactions during the current period. June 12 Issued 80,500 shares of $1 par value common stock for cash of $301,875. July 11 Issued 4,050 shares of $100 par value preferred stock for cash at $106 per share. Nov. 28 Purchased 1,350 shares of treasury stock for $8,550.

Answer 1

June 12

Dr Cash $301,875

Cr Common Stock $80,500

Cr Paid-in Capital in Excess of Stated Value—Common Stock $221,375

July 11

Dr Cash $429,300

Cr Preferred Stock $405,000

Cr Paid-in Capital in Excess of Par Value—Preferred Stock $24,300

Nov. 28

Dr Treasury Stock 8,550

Cash 8,550

Step-by-step explanation:

Oriole Company

Journal entries

June 12

Dr Cash $301,875

Cr Common Stock (80,500×$1) $80,500

Cr Paid-in Capital in Excess of Stated Value—Common Stock $221,375

July 11

Dr Cash (4,050×$106) $429,300

Cr Preferred Stock (4,050×100) $405,000

Cr Paid-in Capital in Excess of Par Value—Preferred Stock [4,050×($106-$100)$6] $24,300

Nov. 28

Dr Treasury Stock 8,550

Cr Cash 8,550