Accounting for various stockholders’ equity transactions (Learning Objectives 3, 5, & 7) 20–25 min.

Oxford Communications, Inc., began 2014 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 2014, 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.

Requirements 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, 2014. Ignore net income.

AppendixLO1