Olson Corporation was authorized to issue 25,000 shares of $100 par value, 5% preferred stock and 100,000 shares of $10 par value common stock. This assignment requires you to record the stock transactions for Olson Corporation for 2000 and 2001 in the general journal.
Transactions for 2000
Jan. 1 Issued 50,000 shares of $10 par value common stock at $15 per share.
Jan. 1 Issued 5,000 shares of $100 par value preferred stock at $105 per share.
Dec. 31 The board of directors declared a dividend for one year on the $100, 5% preferred stock (5,000 shares issued) and of $0.80 per share on the shares of common stock (50,000 shares issued).
Transactions for 2001
Feb. 15 Paid the dividends declared in the previous transaction. Recall that the company declared a dividend for one year on the $100, 5% preferred stock (5,000 shares issued) and of $0.80 per share on the shares of common stock (50,000 shares issued).
Apr. 25 Purchased 2,000 shares of its own $10 par value stock at $17 per share.
| DATE | ACCOUNT | DEBIT | CREDIT |
| 2000 | |||
| Jan. 1 | Cash
Common Stock Contributed Capital in Excess of Par – Common |
750,000
|
500,000 250,000 |
| Jan. 1 | Cash
Preferred Stock Contributed Capital in Excess of Par – Preferred |
525,000
|
500,000 25,000 |
| Dec. 31 | Dividends
Dividends Payable – Common Dividends Payable – Preferred |
65,000
|
40,000 25,000 |
| 2001 | |||
| Feb. 15 | Dividends Payable – Common
Dividends Payable – Preferred Cash |
40,000
25,000 |
65,000 |
| Apr. 25 | Treasury Stock
Cash |
34,000
|
34,000 |
