Ossen Communications, Inc., began 2012 with 3 million shares of $1 par common stock issued and outstanding.

Question:

Ossen Communications, Inc., began 2012 with 3 million shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par was $6.4 million, and Retained Earnings was $10 million. In June 2012, Ossen Communications, Inc., issued 90,000 shares of stock at $10 per share. In October, when the stock’s market price was $15 per share, the board of directors distributed a 20% stock dividend.

Requirements

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 20% stock dividend.

2. Prepare the company’s statement of stockholders’ equity for the year ended December 31, 2012. Ignore net income.

Common Stock
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