Question

Problem 15-06 Oriole Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 7,600 shares) $459,100 Retained Earnings 266,700

Prepare entries in journal form to record the following transactions, which took place during 2021. (Credit account titles are automatically indented when 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.) (1) 290 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $22 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $103 per share. (5) 500 shares of outstanding stock were purchased at $105 per share. (6) 380 of the shares purchased in (5) above were resold at $96 per share. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6.

Prepare the stockholders’ equity section of Oriole Company’s balance sheet after giving effect to these transactions, assuming that the net income for 2021 was $86,300. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.) ORIOLE COMPANY Stockholders’ Equity December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 $     Additional Paid-in Capital    Capital Stock    Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Capital Stock    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Property, Plant and Equipment    Total Stockholders' Equity     AddLess :     Additional Paid-in Capital    Capital Stock    Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Capital Stock    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Property, Plant and Equipment    Total Stockholders' Equity     $

Answer 1

1)

No.	Account Titles and Explanation	Debit	Credit
1.	Treasury stock (290*$97)	$28130
	Cash		$28130
	(To record treasury stock purchased)
2.	Retained earnings (459100/100-290)*$22	$94622
	Dividends payable		$94622
	(To record cash dividend declared)
3.	Dividend payable	$94622
	Cash		$94622
	(To record cash dividend paid)
4.	Cash (290*$103)	$29870
	Treasury stock (290*$97)		$28130
	Paid in capital from Treasury stock (29870-28130)		$1740
	(To record treasury stock sold)
5.	Treasury stock (500*$105)	$52500
	Cash		$52500
	(To record treasury stock purchased)
6.	Cash (380*$96)	$36480
	Paid in capital from Treasury stock	$1740
	Retained earnings (39900-36480-1740)	$1680
	Treasury stock (380*$105)		$39900
	(To record treasury stock sold)

2)

ORIOLE COMPANY
Stockholders’ Equity
December 31, 2021
Common stock	$459100
Retained earnings	256698
Total Paid-in Capital and Retained Earnings	715798
Less: Treasury stock	12600
Total Stockholders' Equity	$703198

Retained earnings= $266700+86300-94622-1680= $256698

Treasury stock= $52500-39900= $12600