Question

Problem 15-1 On January 5, 2017, Oriole Corporation received a charter granting the right to issue 5,200 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 46,600 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Issued 20,300 shares of common stock at $16 per share. Feb. 1 Issued to Sanchez Corp. 3,600 shares of preferred stock for the following assets: equipment with a fair value of $48,600; a factory building with a fair value of $146,000; and land with an appraised value of $266,000. July 29 Purchased 2,000 shares of common stock at $17 per share. (Use cost method.) Aug. 10 Sold the 2,000 treasury shares at $14 per share. Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a $163,400 net income. Record the journal entries for the transactions listed above. (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. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.)

Answer 1

Jan-11	Cash A/c (20300*16)	Dr	324800
	To Common Stock A/c (20300*10)			203000
	To Paid In capital in excess of Par Value A/c			121800
	(324800-203000)
	(Being 20300 shares having par value $10 per share issued at $16 per share)
Feb-01	Equipment A/c	Dr	48600
	Factory Building A/c	Dr	146000
	Land A/c	Dr	266000
	To Preferred Stock A/c (3600*100)			360000
	To Paid In capital in excess of Par Value A/c			100600
	(Being preference shares issued against assets acquired from Sanchez Corp.)
Jul-29	Treasury Stock A/c (2000*17)	Dr	34000
	To Cash A/c			34000
	(Being 2000 shares repurchased at $17 per share)
Aug-10	Cash A/c (2000*14)	Dr	28000
	To Paid In capital in excess of Par Value A/c (34000-28000)		6000
	To Treasury Stock A/c			34000
	(Being 2000 treasury stock reissued at $14)
Dec-31	Income Summary A/c	Dr	163400
	To Retained Earnings A/c			163400
	(Being net income transferred to retained earnings)
Dec-31	Retained Earnings A/c	Dr	37935
	To Common Stock Dividend Payable A/c			9135
	To Preferred Stock Dividend Payable A/c (3600*100*8%)			28800
	(Being common stock dividend declared @0.45 per share and prefered stock dividedn declared)

Initial Share Issued	20300
Less:Purchased treasury stock	2000
Add: Reissued Treasury stock	2000
Total shares at the end of the year	20300
Dividend per share	0.45
Total Dividend (0.45*20300)	9135

Shareholder's Equity
Common Stock (20300*10)	203000
Preferred Stock (3600*100)	360000
Pain In Capital Excess of Par Value (121800+100600-6000)	216400
Retained Earnngs (163400-37935)	125465
Total Stockholders' Equity	904865