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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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
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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.
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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