On June 1, 2023, Blue Company and Kingbird Company merged to...

On June 1, 2023, Blue Company and Kingbird Company merged to form Oriole Inc. A total of 757,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 628,000 shares of stock for cash. All 1,385,000 shares were outstanding on December 31, 2025. Oriole Inc. also issued $600,000 of 20-year, 8\% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 42 shares of common at any interest date. None of the bonds have been converted to date. Oriole Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,545,000. (The tax rate is 20\%.)

Transcript

00:01 Hello students, here is a question.

00:02 Early in the year, debra deal, a several friends organization, a corporation called marketup, inc.

00:10 The corporation was authorized issues of 1 lakh shares of 100 per value of 5 % cumulative preferred stock is 1 million shares, sorry 100 ,000 shares, 1 per value of common shares.

00:25 The following transaction among the others are incurred due to the year.

00:30 So, there is some information given here.

00:32 So, there are some transactions, jan 7th, jan 12th, 18th, jan 5th and november 25th, december 11th and 31st transactions are given in the question.

00:42 So, it is belong to the journal entry.

00:44 Let us start doing the journal entry for this accounts.

00:49 So, journal entries, the format of journal entries are date, account, title, debit, credit.

01:11 So, the date comes to jan 7th.

01:15 So, the jan 7th here, they are given issued cash of 30 ,000 shares of common stock, 10 per share.

01:21 The shares were issued to deal the 4 other investors.

01:25 So, cash account comes to debtor, 2 common stock, par value is 1.

01:43 Then to security premium.

01:49 So, our cash comes to 300 ,000 and total stock is 30 ,000 and to security premium is 270 ,000 dollars.

02:01 So, the next date is jan 12th.

02:04 So, jan 12th is issued an additional 1 ,000 shares of common stock to deal in the exchange of a services organized to the corporation.

02:13 The stakeholders agreed these services were worth 12 ,000.

02:17 So, service of deal account to common stock account to share premium account.

02:37 So, being share issued for the cash at premium.

02:41 So, here the services charges are 12 ,000, common stock is 1 ,000 and share premium is 11 ,000.

02:52 Our next journal entry is jan 18th...

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