Universal Communications, Inc., began 2016 with 340,000 shares of $1 par common stock issued and outstanding. Beginning

Question:

Universal Communications, Inc., began 2016 with 340,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par- Common was $590,000, and Retained Earnings was $750,000. In June 2016, Universal Communications, Inc., issued 13,000 shares of stock at $8 per share. In October, when the stock's market price was $12 per share, the board of directors distributed a

5 percent stock dividend.

Requirements

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 5 percent stock dividend.

2. Prepare the company's statement of stockholders' equity for the year ended December 31, 2016. Ignore net income?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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