ACC 211, Fall 2017, Exam Page B of 11 7. Prepare the journal Olaf Company engage

Question

ACC 211, Fall 2017, Exam Page B of 11 7. Prepare the journal Olaf Company engaged in the following stock transactions during 201 entries to record each transaction in the space provided. C. 1. land with a fair (market) Issued 15,000 shares of no-par value common stock for value of $160,000. Each share of stock had a stated value of $5. (6 points) 2. Issued 5,000 shares of ss0 par value preferred stock for $85 cash per share.(6 points) Account Title Debit Credit 3. Purchased 2,000 shares of its own common stock at a price of $9 cash per share. (3 points) Account Title Debit Credit

Explanation / Answer

Transaction Account title Debit Credit 1. Land $160,000 Common stock(15000×$5) $75,000 Paid in capital-common stock(balance amount) $85,000 (To record purchase of land) 2. Cash(5000×$85) $425,000 Preferred stock(5000×$50) $250,000 Paid in capital-preferred stock(5000×$35) $175,000 (To record issue of preferred stock) 3. Treasury stock $18,000 Cash(2000×$9) $18,000

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