Analyzing stockholders’ equity (Learning Objective 7) 10–15 min.

Use the statement of stockholders’ equity in Exhibit 10-8 to answer the following questions:

1. Make journal entries to record the declaration and payment of cash dividends during 2014.

2. How much cash did the issuance of common stock bring in during 2014?

3. What was the cost of the treasury stock that was purchased during 2014? What was the cost of the treasury stock that was sold during the year? For how much was the treasury stock sold during 2014?

AppendixLO1