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On September 15, 2023, the Board of Directors of Oriole Company declared a $0.25 per share cash dividend, payable on October 31 to shareholders of record as of October 1. On the date of declaration, Oriole Company had 209,000 common shares issued, of which 20,000 were held in Treasury. On October 15, 2023, the company issued an additional 53,000 common shares for $5.10 each.Prepare all the required journal entries to record these transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit

Question

On September 15, 2023, the Board of Directors of Oriole Company declared a 0.25persharecashdividend,payableonOctober31toshareholdersofrecordasofOctober1.Onthedateofdeclaration,OrioleCompanyhad209,000commonsharesissued,ofwhich20,000wereheldinTreasury.OnOctober15,2023,thecompanyissuedanadditional53,000commonsharesfor0.25 per share cash dividend, payable on October 31 to shareholders of record as of October 1. On the date of declaration, Oriole Company had 209,000 common shares issued, of which 20,000 were held in Treasury. On October 15, 2023, the company issued an additional 53,000 common shares for 5.10 each.Prepare all the required journal entries to record these transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit

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Solution

The journal entries for the transactions would be as follows:

  1. On September 15, 2023, when the dividend is declared:

    Dividends Payable [(209,000 shares - 20,000 treasury shares) * 0.25]=0.25] = 47,250 Retained Earnings = $47,250

    The entry is:

    Debit: Retained Earnings 47,250Credit:DividendsPayable47,250 Credit: Dividends Payable 47,250

  2. On October 31, 2023, when the dividend is paid:

    Cash = 47,250DividendsPayable=47,250 Dividends Payable = 47,250

    The entry is:

    Debit: Dividends Payable 47,250Credit:Cash47,250 Credit: Cash 47,250

  3. On October 15, 2023, when the additional shares are issued:

    Cash (53,000 shares * 5.10)=5.10) = 270,300 Common Stock = $270,300

    The entry is:

    Debit: Cash 270,300Credit:CommonStock270,300 Credit: Common Stock 270,300

Please note that the actual account titles may vary depending on the company's chart of accounts.

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