Century Communications, Inc., began 2016 with 290,000 shares of $1 par common stock issued and outstanding. Beginning

Question:

Century Communications, Inc., began 2016 with 290,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par-Common was $580,000, and retained earnings was $730,000. In February 2016, Century Communications, Inc., issued 10,000 shares of stock at $14 per share. In October, when the stock's market price was $16 per share, the board of directors distributed a 10 percent stock dividend.

Requirements

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 10 percent stock dividend.

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

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