Question: Oxford Communications Inc began 2012 with 2 8 million shares of

Oxford Communications, Inc., began 2012 with 2.8 million shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par was $6.5 million, and retained earnings was $7.5 million. In February 2012, Oxford Communications, Inc., issued 180,000 shares of stock at $9 per share. In October, when the stock’s market price was $17 per share, the board of directors distributed a 10% stock dividend.

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 10% stock dividend.
2. Prepare the company’s statement of stockholders’ equity for the year ended December 31, 2012. Ignore net income.

View Solution:

Sale on SolutionInn
  • CreatedApril 29, 2014
  • Files Included
Post your question