Oriole Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $120,000. a. Prepare the journal entry for the issuance when the market price of the common shares is $168 each and market price of the preferred is $210 each. b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $210 per share. (List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 1, 225. Credit account titles are automatically indented when the 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.)
Oriole Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $120,000. a. Prepare the journal entry for the issuance when the market price of the common shares is $168 each and market price of the preferred is $210 each. b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $210 per share. (List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 1, 225. Credit account titles are automatically indented when the 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Oriole Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par
value preferred stock for a lump sum of $120,000. a. Prepare the journal entry for the
issuance when the market price of the common shares is $168 each and market price of
the preferred is $210 each. b. Prepare the journal entry for the issuance when only the
market price of the common stock is known and it is $210 per share. (List all debit entries
before credit entries. Do not round intermediate calculations. Round final answers to 0
decimal places, e.g. 1,225. Credit account titles are automatically indented when the
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.)
Transcribed Image Text:No. Account Titles and Explanation
a.
b.
Cash
Common Stock
Paid-in Capital in Excess of Par - Common Stock
Preferred Stock
Paid-in Capital in Excess of Par - Preferred Stock
Cash
Common Stock
Paid-in Capital in Excess of Par - Common Stock
Preferred Stock
Paid-in Capital in Excess of Par - Preferred Stock
Debit
Credit
| ||
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