Question 5: Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000 shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of operations, the retained earnings balance was $75,000. During 2019, the company had the following stock transactions. Jan. 7 Issued 100,000 shares of common stock at $14 per share. Attorneys for the company accepted 200 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $3,200. May. 5 Issued 10,000 share of preferred a stock at $100 per share. Issued 10,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Olio Corporation's common stock has been actively traded on the stock exchange at $19 per share at the time of the exchange. June 1 July 4 Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share. Oct. 2 Sold 2,000 shares of the treasury stock at $21 per share. Oct. 15 Sold 3,000 shares of the treasury stock at $18 per share. A cash dividends of $0.25 per share was declared to stockholders of Nov. 1 record on November 15. Dec. 1 Paid the cash dividends. A 5% stock dividends was declared. The market price at the declaration date was $6 per share. Dec.5 Dec. 30 Distributed the stock dividends shares. Required: Journalize the 2019 transactions for Olio Corporation.
Question 5: Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000 shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of operations, the retained earnings balance was $75,000. During 2019, the company had the following stock transactions. Jan. 7 Issued 100,000 shares of common stock at $14 per share. Attorneys for the company accepted 200 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $3,200. May. 5 Issued 10,000 share of preferred a stock at $100 per share. Issued 10,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Olio Corporation's common stock has been actively traded on the stock exchange at $19 per share at the time of the exchange. June 1 July 4 Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share. Oct. 2 Sold 2,000 shares of the treasury stock at $21 per share. Oct. 15 Sold 3,000 shares of the treasury stock at $18 per share. A cash dividends of $0.25 per share was declared to stockholders of Nov. 1 record on November 15. Dec. 1 Paid the cash dividends. A 5% stock dividends was declared. The market price at the declaration date was $6 per share. Dec.5 Dec. 30 Distributed the stock dividends shares. Required: Journalize the 2019 transactions for Olio Corporation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 5 :
Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000
shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of operations,
the retained earnings balance was $75,000. During 2019, the company had the following stock
transactions.
Jan. 7
Issued 100,000 shares of common stock at $14 per share.
May. 5
Attorneys for the company accepted 200 shares of common stock as payment for legal
services rendered. The legal services are estimated to have a value of $3,200.
Issued 10,000 share of preferred a stock at $100 per share.
Issued 10,000 shares of common stock in exchange for a building. The building was
advertised for $200,000. Olio Corporation's common stock has been actively traded on
the stock exchange at $19 per share at the time of the exchange.
June 1
July 4
Sept. 1
Purchased 7,000 shares of common stock for the treasury at $20 per share.
Oct. 2
Sold 2,000 shares of the treasury stock at $21 per share.
Oct. 15
Nov. 1
Sold 3,000 shares of the treasury stock at $18 per share.
A cash dividends of $0.25 per share was declared to stockholders of
record on November 15.
Dec. 1
Paid the cash dividends.
A 5% stock dividends was declared. The market price at the
declaration date was $6 per share.
Dec.5
Dec. 30
Distributed the stock dividends shares.
Required: Journalize the 2019 transactions for Olio Corporation.
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